No exemption from transfer of assets abroad provisions

22 March 2020

Issue: 4737 / Categories: Tax cases

A Davies, P McAteer, B Evans-Jones v CRC, Upper Tribunal (Tax and Chancery Chamber), 10 March 2020

In 2002 SAP Ltd a company incorporated in the Isle of Man agreed to buy the bulk of a UK development property for £1.25m and paid a non-refundable deposit of £125 000. After further advice ABP was incorporated in Mauritius and completed the purchase in place of SAP. The taxpayers each took a life policy with Credit Suisse Life and Pensions (Bermuda) Ltd paying premiums of £3 000 each. Their entitlements under the policies were linked to ABP which was wholly owned by Credit Suisse Life and Pensions.

HMRC said the transfer of assets abroad provisions (ITA 2007 s 720) applied and raised discovery assessments to assess income received from ABP. The taxpayers said they were exempt under ITA 2007 s 739 but the First-tier Tribunal dismissed their appeal.

The taxpayers accepted the transactions were ‘tax efficient’ but not that they involved tax avoidance....

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.