13 July 2021

Murphy & Linnett v HMRC; (High Court)

Hugh Murphy and Winifred Linnett v H.M. Revenue and Customs [2021] EWHC 1914 (Admin)

The Claimants challenged HMRC’s interpretation of extra-statutory concession B18 concerning relief for distributions out of non-UK resident discretionary trusts. The specific issue in dispute was whether the concession limited the amount of credit which might be claimed to the amount of UK tax paid on income which arose to the trustee not earlier than six years before the end of the year of assessment in which the distribution was made. Following consideration of the proper approach to construing an extra-statutory concession, the High Court held that it preferred HMRC’s interpretation which restricted the relief and therefore dismissed the claim.

To see the approved decision, click here.

William Massey QC and Ben Elliott (instructed by Howes Percival) for the Claimants.