Michael McGowan and Andrew Thomson Author Journal of Taxation of Investment Article on Investment in the U.K.

Fall 2011

Mr. McGowan and Mr. Thomson co-authored an article titled, “Investment in the UK: Some New Clarification on Tax-Avoidance Issues, But Some Points Still Unclear” in the Fall 2011 issue of Journal of Taxation of Investments. The article discussed two recent decisions by the U.K. Court of Appeal and the Supreme Court on the Mayes case and the Tower MCashback case, which are two marketed income tax avoidance schemes that ended in a win for the taxpayer and a win for Her Majesty’s Revenue and Customs (HMRC) respectively. The courts’ decisions help to outline the scope of the Ramsay principle, which is defined by the authors as “a substance-over-form doctrine developed by the U.K. courts in tax cases,” and has been used by the HMRC against tax avoidance schemes for the past 30 years. The authors highlight the importance for individuals, businesses and their advisers to understand this principle when considering investments in the U.K.