.png)
.png)
Two decisions were heard together in the Court of Appeal. Both concerned the retrospective effect of FA 2008 s 58 ‘UK residents and foreign partnerships’.
In Shiner the taxpayers had taken part in a marketed tax avoidance scheme set up in the Isle of Man (IoM).
It took advantage of the UK/IoM double taxation agreement (DTA) by channelling the profits of a Manx partnership to UK resident taxpayers through interest in possession trusts established by the taxpayers with a payment of £10 each in the Isle of Man.
The taxpayers claimed relief from UK income tax on the payments they received from the Manx trusts.
HMRC wrote to the taxpayers saying s 58 applied retrospectively and had the effect of making the income arising in the partnerships chargeable on the taxpayers.
...Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
