Double Taxation

Treasury written question – answered on 8th January 2014.

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Photo of Anne Main Anne Main Conservative, St Albans

To ask the Chancellor of the Exchequer what assessment he has made of the implications for HM Revenue and Customs of the recent High Court decision, R (on the application of Huitson) v Her Majesty's Revenue and Customs (2011) EWCA Civ 893, in respect of section 58(4) of the Finance Act 2008.

Photo of David Gauke David Gauke The Exchequer Secretary

UK residents are taxable on their worldwide income wherever it arises—including situations where it arises by way of foreign partnerships. Section 58 of Finance Act 2008 was enacted to help put that beyond doubt and in so doing, made clear that a wholly artificial tax avoidance scheme involving a foreign partnership comprised of foreign trustees did not work.

The Government have given full consideration to all decisions of the courts which relate to section 58, including the case referred to above.

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