Private International law

This subtopic is intended to cover the main areas where private international law (also known as conflict of laws) is relevant to private client practice. Topics covered include the administration of estates, succession, family and matrimonial matters, situs of property, mental capacity and the execution of documents. We shall continue to add content on these and other topics, depending on the needs of our clients.

What is private international law?

The branch of English law known as private international law (PIL), in contradistinction to both the ordinary local or domestic law of England and public international law, is concerned with cases having a foreign element. By a 'foreign element' is meant a connection with some system of law other than English law.

The conflict of laws rules are part of the domestic laws of a particular jurisdiction and can differ from one jurisdiction to another. When events or transactions involving civil and commercial matters are not confined within the borders of a single country, the domestic legal systems of the different countries involved may have substantive laws that govern the subject matter of the legal dispute

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Market value, distributions and notional transactions—key SDLT lessons from Tower One St George Wharf Ltd v HMRC

Tax analysis: In Tower One St George Wharf Ltd v HMRC, the Court of Appeal considered the basis on which stamp duty land tax (SDLT) should be assessed and whether that resulted in SDLT being paid on the market value, the actual consideration paid, or on some other basis for a complex transaction within a corporate group. The taxpayer argued that the ‘Case 3’ exception under section 54(4) of the Finance Act 2003 (FA 2003) applied, which would result in SDLT being charged on the actual consideration. HMRC argued that the exception did not apply, which would result in SDLT being paid on the market value of the property. Alternatively, HMRC argued that if the exception did apply then the anti-avoidance provisions at FA 2003, s 75A applied, potentially resulting in an even higher SDLT charge. The Court of Appeal held that although the Case 3 exception applied, the anti-avoidance provision in FA 2003, s 75A also applied. This resulted in SDLT being assessed on an aggregate amount that was even higher than the property's market value (although HMRC did not seek to increase its assessment beyond market value). Therefore, the appeal was dismissed. As explained by Jon Stevens, partner, and Rory Clarke, solicitor, at DWF Law LLP, this decision deals with the interaction of a number of complex SDLT provisions and clarifies the SDLT provisions relating to transfers to connected companies and the SDLT anti-avoidance provisions, with implications for corporate structuring and tax planning.

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