‘This judgment is about the tax effectiveness of a ‘rate-boosting’ scheme (‘the Scheme’), that is, a scheme to boost claims to double tax credit relief (‘DTR’) in the hands of a UK parent company (‘the UK ultimate parent’) on a dividend (‘a Case V dividend’) received by it from any of its overseas subsidiaries and originating from another UK resident company (‘the UK subsidiary’). A Case V dividend is taxable under Case V of schedule D to the Income and Corporation Taxes Act 1988 (‘ICTA’). The UK ultimate parent is entitled to credit for foreign tax suffered by the paying company (‘the paying subsidiary’) and its subsidiaries.’
Arden. Kitchin, Jackson LJJ
[2016] EWCA Civ 468
Bailii
England and Wales
Corporation Tax
Updated: 10 November 2021; Ref: scu.564449
