28 July 2014
UT Decision: Chappell v HMRC
INCOME TAX – tax avoidance scheme – whether there was transfer of overseas securities and payment of manufactured overseas dividend when relevant statutory provisions construed purposively and transactions viewed realistically – no – whether annual payment not payable under deduction and retention of income tax was deductible for purposes of income tax – no – if payment deductible as payment of manufactured overseas dividends treated as annual payments within section 349(1) ICTA 1988 whether Section 3 ICTA 1988 restricts tax relief to higher rate – yes – appeal by Appellant dismissed and appeal by Respondents allowed
David Ewart QC & Edward Waldegrave, instructed by NT Advisors LLP, acted for the Appellant.
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