The Upper Tribunal has handed down its Decision in Panayi v HMRC [2024] UKUT 319 (TCC).
The taxpayers had challenged the compatibility of the UK’s trust exit tax regime with EU law. The issue was whether the UK provisions could be given a conforming interpretation (as HMRC contended) or whether the tax charge had to be disapplied. The UT held, accepting HMRC’s submissions, that a conforming interpretation of the provisions was possible, bringing them into line with the requirements of EU law.
As a result, HMRC’s assessments were upheld and the taxpayers’ appeal was dismissed.
Jonathan Bremner KC appeared for HMRC.
A copy of the Decision can be found here.
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