Important News
As many of you may be aware, last week a Judicial Review challenged sections 58(4) and (5) of the Finance Act 2008 under the Human Rights Act 1998.
The challenge, stated that the relevant sections of the Finance Act 2008 (BN66) changed fiscal legislation in regard to double taxation agreements ("DTA") with retrospective effect. It was argued that this retrospective amendment did not strike a fair balance.
The background to this case is that in June 2001 an Isle of Man based Tax Consultant organisation provided advice to a client (and many other UK residents) with respect to a tax avoidance scheme, seeking to take advantage of the United Kingdom – Isle of Man Double Taxation Arrangement ("the DTA").
The ruling on the Judicial review delivered on 28 January 2010 upheld the 2008 Finance Act. HMRC were then able to close the loophole retrospectively and the challenge was dismissed.
This is to clarify that no part of AML's business model or any sums received by any employee or UK beneficiary of AML makes use of the double taxation treaty.
AML's employees do not and have never received profits from a foreign (trading) partnership and therefore the changes in the affected legislation of the Finance Act 2008 do not affect the way that AML or its employees work.
If you would like to discuss this further with us, please call our customer services team who will be happy to assist.
