United Kingdom: Corporate Tax

The Upper Tribunal examined whether a limited liability partnership was carrying on a business with a view to profit when loan notes were transferred to it, determining the application of capital gains tax provisions. The case explores the interpretation of 'business' in tax legislation and the application of the Ramsay principle of purposive statutory construction in the context of a tax mitigation arrangement.

The government is proposing to introduce a new legal obligation for taxpayers to correct errors in tax returns or documents provided to HMRC.

Overseas companies that do not want to be tax resident in the UK or have a permanent establishment (PE) in the UK should take note of recent developments.

Establishing a trust requires transferring legal ownership and control of assets, but settlors often seek ways to retain some influence over their wealth. This analysis explores the delicate balance between maintaining appropriate involvement in trust arrangements and preserving their legal effectiveness, examining the mechanisms available and the significant risks that arise when control is retained too extensively.

Transfer pricing litigation in the UK has historically been rare, but recent procedural cases reveal HMRC's increasingly aggressive approach to enquiries. With average enquiry durations now exceeding 40 months and transfer pricing yield surging to £3.4bn, understanding the legal boundaries of information requests and closure notice applications has become critical for multinational groups facing contentious disputes.

For eligible companies, EMI options and growth shares each offer distinct advantages in employee equity incentives. But what happens when you combine them? This analysis explores how EMI can wrap contingent growth-share interests, the valuation principles that must be respected, and why the hurdle, exercise price and performance conditions need to be designed together to avoid accidentally over-gearing management's participation.

The UK commercial real estate market presents significant opportunities for overseas investors, but successful acquisitions require careful navigation of legal structures, tax implications...

The UK government plans to fundamentally reshape how British companies are taxed on their overseas operations by making the foreign permanent establishment exemption mandatory from 2027, with oil and gas companies facing an accelerated implementation timeline. This policy shift eliminates the current flexibility that allows UK businesses to offset foreign branch losses against domestic profits, raising critical questions about international competitiveness and investment strategy.

The UK tax authority is proposing sweeping changes to how it taxes individuals for company distributions and capital reductions, modernizing outdated legislation to ensure economically similar payments receive consistent tax treatment. However, these proposals represent a significant departure from long-established rules that underpin the UK's attractiveness as a place to do business and invest, potentially inflicting collateral damage on wider commercial activity and retail investors.