.png)
.png)
Alarming qualities
Key points
- The miscellaneous income rules have rapidly outgrown their application to partner’s discretionary rewards and now encompass quasi-equity interests.
- The question at the heart of this dispute was the nature of the capital interests. The MDPs argued that they were interests in the capital of UK LLP and subject to capital gains tax. HMRC argued that they were simply cash rights and subject to income tax.
- In Boston Consulting Group HMRC has succeeded in extending the range of the residual charge on miscellaneous income to cover quasi-equity arrangements in such scenarios.
- Consider the cases BlueCrest [2024] STC 92 HFFX [2023] STC 678 and Odey (TC8018).
The miscellaneous income rules are showing the same alarming qualities as Jack’s beanstalk. They have rapidly outgrown their application to partner’s discretionary rewards and now encompass quasi-equity interests. In achieving this feat HMRC has once again successfully deployed the tactics now familiar...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
