Rialas v HMRC [2019] WTLR 1251

Winter 2019 #177

During the relevant tax years, R was resident and ordinarily resident, but not domiciled, in the United Kingdom. He was a Cypriot national. He held 50% of the issued shares of ACM, a company incorporated in England and Wales. R worked full time in ACM, which carried on a successful business as a fund manager. C held the other 50% of the shares of ACM.

In order to sell his shares in ACM, R decided to acquire C ‘s shares in ACM using a trust and a company resident outside the UK and borrowed funds, also from an offshore company. R established the R Trust, a discretionary family trus...