Ardmore Construction Ltd v Revenue & Customs [2014] UKFTT 453 (TC) (13 May 2014)

Ardmore Construction Ltd v Revenue & Customs [2014] UKFTT 453 (TC) (13 May 2014)

Interest paid by Ardmore Construction Ltd to offshore trusts and companies arose in the United Kingdom, as determined by a multi-factorial approach including the residence of the debtor, situs of the debt, and the origin of funds. Therefore, Ardmore was liable to deduct and account for income tax under s 874 ITA...

Source-derived case information.

Citation
[2014] UKFTT 453
Parties
Appellant: Ardmore Construction Ltd; Respondent: Revenue & Customs (HMRC)
Jurisdiction
United Kingdom
Judgment Date
13 May 2014
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Interest Payments, Source of Interest, Withholding Tax, Offshore Trusts, Citation of Unpublished Decisions
Tax Law Income Tax Corporation Tax Interest Payments Source of Interest Withholding Tax Offshore Trusts Citation of Unpublished Decisions

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Parties

Ardmore Construction Ltd

Appellant

Revenue & Customs (HMRC)

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether interest payments made by a UK company to offshore trusts/companies are 'arising in the United Kingdom' within the meaning of s 874 Income Tax Act 2007
  2. 2 Whether an unpublished decision of a Special Commissioner should be cited before the Tribunal and the effect of such citation

Ratio Decidendi

Interest paid by Ardmore Construction Ltd to offshore trusts and companies arose in the United Kingdom, as determined by a multi-factorial approach including the residence of the debtor, situs of the debt, and the origin of funds. Therefore, Ardmore was liable to deduct and account for income tax under s 874 ITA 2007. Citation of unpublished Special Commissioner decisions is improper and should not be relied upon in future cases.

Court Disposition

Appeal dismissed

Orders

  • Ardmore's appeal against the income tax assessments is dismissed.
  • HMRC awarded costs of and incidental to the appeal on the standard basis, to be assessed if not agreed.