CA confirms FTT approach to determining POEM for dual resident trusts
In G Haworth and others v HMRC[2025] EWCA Civ 822 (1 July) the Court of Appeal (CA) dismissed the taxpayers’ appeal upholding the FTT and UT decisions that the place of effective management (POEM) of Mauritian trusts remained in the UK meaning that HMRC’s assessments for capital gains were therefore effective. POEM may be distinguished from ‘central management and control’ (CMC) and as a tie-breaker provision in international tax treaties only one POEM is to be expected.
The only issue before the CA was the proper interpretation of POEM for the purposes of the Mauritius/UK double tax treaty.
In Spring 2000 arrangements were made in respect of three trusts with Jersey resident trustees with the aim of avoiding UK CGT on disposal of shares in UK companies in which the trusts...
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CA confirms FTT approach to determining POEM for dual resident trusts
In G Haworth and others v HMRC[2025] EWCA Civ 822 (1 July) the Court of Appeal (CA) dismissed the taxpayers’ appeal upholding the FTT and UT decisions that the place of effective management (POEM) of Mauritian trusts remained in the UK meaning that HMRC’s assessments for capital gains were therefore effective. POEM may be distinguished from ‘central management and control’ (CMC) and as a tie-breaker provision in international tax treaties only one POEM is to be expected.
The only issue before the CA was the proper interpretation of POEM for the purposes of the Mauritius/UK double tax treaty.
In Spring 2000 arrangements were made in respect of three trusts with Jersey resident trustees with the aim of avoiding UK CGT on disposal of shares in UK companies in which the trusts...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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