Clipperton & anr v HMRC WTLR(w) 2021-08

Wills & Trusts Law Reports | Web Only

Dunsby v Commissioners for Her Majesty’s Revenue and Customs [2021] WTLR 157

Wills & Trusts Law Reports | Spring 2021 #182

This was an appeal concerning a tax avoidance scheme designed to allow shareholders in private companies to extract profits without paying income tax on them.

Prior to entering into the scheme, T was sole director and shareholder of M Ltd. The scheme had three steps:

  1. (1) On 11 March 2013, the board of directors of M Ltd (ie T as sole director) and T resolved to approve the creation of a new class of ‘S’ ordinary shares and the necessary amendments to M Ltd’s articles of association. On the same day, M Ltd (by resolution of T as sole shareholder) created the new S clas...