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Jul 06, 2015

Is It All Now Transparent? UK Supreme Court Case on Delaware LLCs Leaves Open Questions on Entity Classification for UK Tax Purposes

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The UK Supreme Court delivered an unexpected final judgment on 1 July 2015 in the long-running case of Anson v Commissioners for Her Majesty’s Revenue & Customs. Reversing the decisions of the Upper Tribunal and the Court of Appeal, the Supreme Court upheld the original 2010 ruling of the First Tier Tribunal in deciding that Mr Anson, a UK resident member of HarbourVest Partners LLC, a Delaware limited liability company, was entitled to credit against UK tax for US tax borne on the LLC’s profits. 

The decision raises questions over the status of HMRC’s long-standing practice that Delaware LLCs are generally not fiscally transparent for UK tax purposes.

View full memo, Is It All Now Transparent? UK Supreme Court Case on Delaware LLCs Leaves Open Questions on Entity Classification for UK Tax Purposes

Authors and Contributors

Simon Letherman

Partner

Tax

+44 20 7655 5139

+44 20 7655 5139

London

Michael Shulman

Partner

Tax

+1 212 848 8080

+1 212 848 8080

New York

Practices