Home > Tax Advice, Uncategorized > Court Denies UK Taxpayer Double Tax Relief for Delaware Company

Court Denies UK Taxpayer Double Tax Relief for Delaware Company

The Court of Appeal has now confirmed the decision of the Upper Tier Tribunal in Anson –v- HMRC, a case dealing with the issue of whether a Delaware Limited Liability Company was tax transparent or not.

Mr Anson was a member of a Delaware LLC which carried on business in the US. Since a Delaware LLC is considered to be tax transparent for US fiscal purposes, he was taxed in the US on his share of the profits as if the LLC was a partnership rather than a company.

The question was whether he could use the UK/US double tax treaty to claim credit for the tax paid in the US against UK income tax on his profits under the double tax treaty.

That depended upon whether it could be said that Mr Anson’s source of income was the same for US

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