The Supreme Court has granted HMRC permission to appeal on one issue, namely the amount of tax credit to which a taxpayer is entitled by way of reduction of the unlawful charge to corporation tax on foreign dividends under Schedule D Case V. The Court of Appeal held that credit should be given for the relevant foreign tax at the higher of the effective rate (i.e. the actual tax paid) or a credit at the foreign nominal rate. On all other issues (including those relating to ACT), the Court has reserved the decision on whether to grant permission for consideration at the hearing.
This article appears in the JHA March 2017 Tax Newsletter, which also features:
