Burlington Loan Management DAC v HMRC

The case concerned withholding tax on statutory interest earned on debt held in the Lehmans Europe administration. The issue was whether the parties to the debt assignment had a main purpose to "take advantage" of the residence provision (Article 12) in the UK-Irish Double Tax Treaty. The FTT allowed Burlington’s appeal, finding that the parties did not have such a purpose. The UT has now dismissed HMRC's appeal, agreeing with Burlington's submissions that Article 12(5) should not be interpreted as a domestic anti-avoidance provision.

Sam Grodzinski KC acted for Burlington, instructed by Simmons & Simmons.