Jul 06, 2015
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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.