Court of Appeal confirms FTT approach to determining place of effective management (POEM) for dual resident trusts, ratifying HMRC capital gains assessments (Haworth v HMRC)
Tax analysis: In Haworth and others v HMRC, the Court of Appeal dismissed the taxpayers’ appeal, upholding the First-tier Tax Tribunal (FTT) and Upper Tribunal decisions that the place of effective management (POEM) of Mauritian trusts remained in the UK, meaning that HMRC’s assessments for capital gains were therefore effective. POEM may be distinguished from ‘central management and control’ (CMC) and, as a tie-breaker provision in international tax treaties, only one POEM is to be expected.