The Upper Tribunal victory for Andreas Rialas in the UK–Cyprus cross-border case

On 18 December 2020 the Upper Tribunal (Tax and Chancery Chamber) issued judgment in favour of the taxpayer in Andreas Rialas [2020] UKUT 0367 (TCC). The case concerned the transfer of assets abroad rules (TA 1988 s 739 at the time). The case provides a judicial ruling on several important points concerning their application by the Upper Tribunal supporting the findings of the First-tier Tribunal (FTT) (TC7316) on the grounds of UK legislation. As this was enough the EU points in relation to freedom of movement of capital were not considered. The judgment has since been appealed again by HMRC and will now be heard by the Court of Appeal.

Facts

During 2005-06 and 2006-07 Mr Rialas – a national of Cyprus holding a Cypriot passport – was resident and ordinarily resident but not domiciled in the UK. He was a...