Coal Staff Superannuation Scheme Trustees Ltd v Revenue and Customs Comrs

Subject Matter

REVENUE — Income tax — Free movement of capital — Manufactured overseas dividends representative of dividends on overseas shares — Restriction on movement of capital — Whether justified — Income and Corporation Taxes Act 1988, ss 736A, 796, Sch 23A – Finance Act 2004, s 186 – Treaty on the Functioning of the European Union, art 63

[2018] UKUT 152 (TCC); [2018] STC 1095, UT

REVENUE — Income tax — Dividends — Taxpayer lending overseas shares in exchange for sum equivalent to dividends received by borrower during loan term — Borrower required to deduct amount equivalent to withholding tax on gross amount of such “manufactured overseas dividends” — Taxpayer unable to recover deducted tax if exempt from income tax — Whether tax regime for manufactured overseas dividends restricting free movement of capital — Whether restriction justified — Whether regime to be given interpretation conforming with European Union law — Income and Corporation Taxes Act 1988 (c 1), Sch 23A, para 4 (as amended by Finance Act 1996 (c 8), s 159 and Finance Act 2004, Sections 38 to 40 and 45, Schedule 6 (Consequential Amendment of Enactments) Order 2004 (SI 2004/2310), Sch 1, para 37)

[2019] EWCA Civ 1610; [2020] 1 WLR 777; [2020] 2 All ER 756; [2019] STC 2146; [2019] WLR (D) 544, CA

REVENUE — Income tax — Dividends — Taxpayer lending overseas shares in exchange for sum equivalent to dividends received by borrower during loan term — Borrower required to deduct amount equivalent to withholding tax on gross amount of such “manufactured overseas dividends” — Taxpayer unable to recover deducted tax if exempt from income tax — Whether tax regime for manufactured overseas dividends restricting free movement of capital — Whether taxpayer entitled to any remedy — Income and Corporation Taxes Act 1988 (c 1), Sch 23A, para 4

[2022] UKSC 10; [2022] 1 WLR 2359; [2022] 3 All ER 335; [2022] STC 776; The Times, 2 May 2022, SC(E)

Appellate History

Commentary

UK Supreme Court Blog
Case Comment: Commissioners for Her Majesty’s Revenue and Customs v Coal Staff Superannuation Scheme Trustees Ltd [2022] UKSC 10 Case comment