Court of Appeal’s decision in Development Securities plc

Key points

• The Court of Appeal overturned the Upper Tribunal’s decision on corporate residence.
• The lack of respondent’s notice significantly undermines the judgment’s ability to calibrate the case law test.
• Corporate residence depends on the location of the central management and control.
• The influence of a parent company on a subsidiary’s directors.
• The impact of the decision on corporate residence issues.

The Court of Appeal in Development Securities plc and others v CRC overturned the Upper Tribunal’s decision so that the findings of the First-tier Tribunal that specified Jersey incorporated subsidiaries of the Development Securities group were UK tax resident has been reinstated. The judges unanimously found that the Upper Tribunal was not justified in setting aside the decision of the First-tier Tribunal with Newly LJ giving the leading judgment. However Nugee LJ while agreeing that the Upper Tribunal had erred expressed very considerable...