UBS AG v HM Revenue & Customs

UBS AG v HM Revenue & Customs

The inability of UBS AG to claim a tax credit under s.243 ICTA 1988 is less favourable taxation within the meaning of Article 23(2) of the UK-Switzerland Double Taxation Treaty. While s.788(3)(a) does not incorporate this right into UK law, s.788(3)(d) does, as the tax credit under s.243 is a 'tax credit under...

Source-derived case information.

Parties
Appellant: UBS AG; Respondents: Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
07 February 2006
Procedural Posture
Tax Appeal / High Court Appeal From Special Commissioners
Outcome
Appeal allowed
Legal Topics
Double Taxation Treaty, Tax Credits, Non Discrimination Clause, Corporation Tax, Imputation System
Tax Law International Law Double Taxation Treaty Tax Credits Non Discrimination Clause Corporation Tax Imputation System

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 14 Party arguments 2 Amounts and remedies 11
Sign in to unlock

Parties

UBS AG

Appellant

Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / High Court Appeal From Special Commissioners

Legal Issues

  1. 1 Whether the inability of UBS AG to claim a tax credit under s.243 ICTA 1988 is contrary to Article 23(2) of the UK-Switzerland Double Taxation Treaty
  2. 2 Whether the right to such a tax credit is incorporated into UK law by s.788(3)(a) or s.788(3)(d) ICTA 1988

Ratio Decidendi

The inability of UBS AG to claim a tax credit under s.243 ICTA 1988 is less favourable taxation within the meaning of Article 23(2) of the UK-Switzerland Double Taxation Treaty. While s.788(3)(a) does not incorporate this right into UK law, s.788(3)(d) does, as the tax credit under s.243 is a 'tax credit under section 231' within the statutory definition. Therefore, UBS AG is entitled to the tax credit claimed.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed on the basis of s.788(3)(d) ICTA 1988.
  • UBS AG is entitled to the tax credit claimed under s.243.