Court of Appeal reinstates FTT’s decision that Jersey-incorporated subsidiaries were UK tax resident (HMRC v Development Securities)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the Court of Appeal decide?
• Nugee LJ’s reservations about the FTT’s reasoning
• Court of Appeal’s summary of the case law on company residence
• Case details

Article summary

Tax analysis: In HMRC v Development Securities, the Court of Appeal overturned the decision of the Upper Tribunal (UT) and reinstated the decision of the First-tier Tax Tribunal (FTT) that three Jersey-incorporated special purpose vehicles that were subsidiaries of a UK tax resident parent company were centrally managed and controlled, and therefore tax resident, in the UK (and not in Jersey as the UT decision had concluded).