Author: John Kavanagh
BlueCrest in the Supreme Court: the salaried members rules bite hard
Introduction On 1 July 2026 the Supreme Court handed down its judgment in HMRC v BlueCrest Capital Management (UK) LLP, dismissing BlueCrest’s appeal and bringing the dispute to an end. The amounts at stake were certainly significant: PAYE of around £142 million and Class 1 NIC of around £55 million. […]
Read MoreThe UK/US estate and gifts tax treaty and deductible debt
Introduction In an earlier post I looked at how a US citizen who has become a long-term UK resident can find his worldwide estate within the charge to inheritance tax, only for the 1978 estate and gift tax treaty to pull most of it back out again where he is […]
Read MoreInheritance tax and US citizens – domicile, long-term residence and the UK/US treaty
An American in the UK A US citizen who has spent a good deal of time in the UK may now find that his or her entire worldwide estate is potentially within the charge to UK inheritance tax, and that an estate tax treaty signed in 1978 is the thing […]
Read MoreSwiss Centre: When a £33 Million Payment Is Not Deductible
Swiss Centre: When a £33 Million Payment Is Not Deductible The Upper Tribunal has recently released its decision in Swiss Centre Ltd v HMRC. On the facts, it is a highly unusual case involving a major property development, the aftermath of the financial crisis, complex group financing arrangements, guarantees, distressed […]
Read MoreCan Too Much Cash In Your Company Cost You BADR?
Introduction Business Asset Disposal Relief (‘BADR’) is often associated with trading businesses, entrepreneurial risk, and the eventual sale or winding up of a successful company. However, many otherwise straightforward BADR claims run into difficulty because of a question which, at first sight, appears surprisingly simple. What happens if the company […]
Read MoreCan a Property Development Company Be Trading Before a Single Brick Is Laid?
Setting the scene… A common structure amongst property developers is to acquire each development site through a separate special purpose vehicle (‘SPV’), owned by a holding company. The reasons for doing so are well known. It can assist with risk management, financing, and ultimately with the sale of completed developments […]
Read MoreSDLT Surcharge for Non-UK Residents acquiring UK residential property
Introduction The 2% SDLT surcharge for non-residents came into effect on 1 April 2021. It applies to purchases of residential property in England and Northern Ireland. It does not apply to land transaction tax in Wales or land and buildings transaction tax in Scotland. The surcharge is not necessarily the […]
Read MoreBusiness Asset Disposal Relief – Traps for the unwary
Business asset disposal relief may not be the most complicated CGT relief there is but it still sets traps here and there. Our professional clients, in particular, discuss BADR with their clients all the time but the points outlined in this article may still sometimes trip up the unwary. The […]
Read MoreQuoted Eurobonds – source of interest
Quoted Eurobonds are often used in structuring debt where offshore entities provide funds for UK activities, e.g., property investment or trading. Conveniently, there is an exemption from withholding tax on the interest paid on Quoted Eurobonds so the overseas investor will not usually be subject to UK tax on that […]
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