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Abstract: 

This article reports on two sets of judicial developments in the United Kingdom of interest to U.S. companies and investors considering investing in them. First, the authors discuss the U.K. Upper Tribunal’s reversal of a lower court decision dealing with the U.K. classification for tax purposes of a Delaware limited liability company (LLC) , which creates the potential for double taxation and thus might dissuade a taxpayer considering investment in such an LLC. Second, the authors look at a U.K. Supreme Court decision on the concept of residence for U.K. tax purposes. As the global economy expands, and more and more individuals work abroad, the U.K. residency question is of importance to “expat” employees and their employers, in the U.S. and elsewhere.

Keywords: entity classification; HMRC v. Anson; residence; Gaines-Cooper case; Davies and James case; double taxation; Delaware LLC; foreign tax credits

Affiliations:  1: Sullivan & Cromwell LLP; 2: Sullivan & Cromwell LLP.