Lomas and Others v HM Revenue and Customs: ChD 11 Oct 2016

Receivers’ payment of statutory interest gross

Substantial sums were to be repaid to creditors after the administration of Lehman Brothers produced a substantial surplus. The sums were to carry interest and the court now considered whether the sums due amounted to ‘yearly interest’ under section 874.
Held: The statutory interest to be paid under Rule 2.88(7) is not ‘yearly interest’ within the scope and meaning of section 874, and thus no obligation to deduct tax arises.

Hildyard J
[2016] EWHC 2492 (Ch), [2016] WLR(D) 518, [2016] STI 2782, [2017] Bus LR 520, [2016] BTC 42
Bailii, WLRD
Income Tax Act 2007 874
England and Wales
Cited by:
Appeal fromRevenue and Customs v Lomas and Others (Administrators of Lehman Brothers International (Europe)) CA 19-Dec-2017
. .
CitedRevenue and Customs v Joint Administrators of Lehman Brothers International (Europe) SC 13-Mar-2019
The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income Tax Act 2007. If so, the administrators must deduct income tax before paying interest . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 17 January 2022; Ref: scu.570125