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15 August 2001 / Andrew Gotch

Issue: 3820 / Categories: Comment & Analysis

ANDREW GOTCH, consultant for Professional Tax Practice Ltd, scrutinises the House of Lords' decision in R v Commissioners of Inland Revenue ex parte Newfields Developments Ltd.

On 23 May 2001 judgment was given in favour of the Inland Revenue by the House of Lords in R v Commissioners of Inland Revenue ex parte Newfields Developments Ltd (see (2001) STC 901). There is no further avenue for appeal and taxpayers will have to live within the fiscal consequences of the decision in the future.

However the way in which their Lordships arrived at their decision deserves scrutiny as do the implications of the decision for the future.

Facts and point of law

The facts very shortly were these. (All statutory references are to the Taxes Act 1988 unless otherwise specified.)

An individual Mrs Walker was a controlling participator in Newfields Developments Ltd. This was because a trust held a controlling proportion of the Newfields's shares which by reason of her interest in income of the trust...

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Close Companies - Forced Fit

© Copyright LexisNexis 2024. All rights reserved.

15 August 2001 / Andrew Gotch

ANDREW GOTCH, consultant for Professional Tax Practice Ltd, scrutinises the House of Lords' decision in R v Commissioners of Inland Revenue ex parte Newfields Developments Ltd.

On 23 May 2001 judgment was given in favour of the Inland Revenue by the House of Lords in R v Commissioners of Inland Revenue ex parte Newfields Developments Ltd (see (2001) STC 901). There is no further avenue for appeal and taxpayers will have to live within the fiscal consequences of the decision in the future.

However the way in which their Lordships arrived at their decision deserves scrutiny as do the implications of the decision for the future.

Facts and point of law

The facts very shortly were these. (All statutory references are to the Taxes Act 1988 unless otherwise specified.)

An individual Mrs Walker was a controlling participator in Newfields Developments Ltd. This was because a trust held a controlling proportion of the Newfields's shares which by reason of her interest in income of the trust...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

3820

Categories: Comment & Analysis [1]

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