Cross-Border Investments: HMRC Responds to U.K. Supreme Court Ruling That a Delaware LLC Is “Tax-Transparent”
Author: Michael McGowan.; Andrew Thomson.; Emma Hardwick.
Source: Volume 33, Number 02, Winter 2016 , pp.59-68(10)
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Abstract:
This article reports on a U.K. development of interest to U.S. companies and investors considering investing in them. The U.K. Supreme Court has given the final decision on the U.K. tax classification of a Delaware limited liability company (LLC), preventing double taxation of an individual investor, but raising questions for corporate groups holding such LLCs below U.K. companies; and the U.K. tax authority has issued guidance in response explaining how it plans to treat such LLCs in future.Keywords: tax transparency, opaque, classification factors, LLC, United Kingdom, Anson v. HMRC
Affiliations:
1: Sullivan & Cromwell LLP; 2: Sullivan & Cromwell LLP; 3: Sullivan & Cromwell LLP.