Perrin v Revenue & Customs [2014] UKFTT 223 (TC) (26 February 2014)

Perrin v Revenue & Customs [2014] UKFTT 223 (TC) (26 February 2014)

The interest paid by Mr Perrin arose in the UK because the residence of the debtor (Mr Perrin) and the substantive origin of the funds for payment and enforcement were in the UK, outweighing the factors of jurisdiction and actual payment location in the Isle of Man. Therefore, Mr Perrin was required to deduct UK income tax at source under s874 ITA 2007.

Citation
[2014] UKFTT 223 (TC)
Parties
Appellant: Andrew Colin Perrin; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 February 2014
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Withholding Tax, Interest Payments, Source of Income, International Taxation
Tax Law Income Tax Withholding Tax Interest Payments Source of Income International Taxation

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Parties

Andrew Colin Perrin

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether interest paid by Mr Perrin to an Isle of Man recipient arose in the UK for the purposes of s874 ITA 2007 and required deduction of UK income tax at source.

Ratio Decidendi

The interest paid by Mr Perrin arose in the UK because the residence of the debtor (Mr Perrin) and the substantive origin of the funds for payment and enforcement were in the UK, outweighing the factors of jurisdiction and actual payment location in the Isle of Man. Therefore, Mr Perrin was required to deduct UK income tax at source under s874 ITA 2007.

Court Disposition

Appeal dismissed

Orders

  • Mr Perrin's appeal against the income tax assessments is dismissed.