Inland Revenue Commissioners v Willoughby

This case concerned the application of statutory anti-avoidance provisions in the Income and Corporation Taxes Act 1988 to transfers of assets to offshore funds where some investments were made before and some after the taxpayers became resident in the United Kingdom. The issues included whether the anti-avoidance provision applied where the transferor was not resident in the United Kingdom at the time of the transfer, and whether an exemption applied because avoidance of tax was not the purpose or one of the purposes of the transfer.

The statutory provisions invoked in the case included sections 553, 739 and sections 741 to 743 of the Income and Corporation Taxes Act 1988. The judgment as provided does not state the court's ultimate decision or detailed reasoning.

Background and parties: Not all factual detail is given in the provided text. The dispute concerned taxpayers who made investments in offshore funds, some investments having been made prior to the taxpayers becoming UK resident and later investments falling within a specific tax regime. The appellant was the Inland Revenue Commissioners and the respondent was Willoughby.

Nature of the claim and relief sought: The case raised questions of income tax avoidance: whether the anti-avoidance provisions of the Income and Corporation Taxes Act 1988 applied to the transfers of assets in question and whether any statutory exemption applied on the ground that avoidance of tax was not the purpose or one of the purposes of the transactions. The precise orders sought are not stated in the provided text.

Procedural posture: This is an appeal to the House of Lords. Prior stages of the litigation and their citations are not stated in the provided text.

Issues framed by the court:

• Whether the anti-avoidance provision applied to transfers of assets made by a transferor who was not resident in the United Kingdom at the time of transfer.
• Whether an exemption applied because avoiding tax was not the purpose or one of the purposes of the transfer of assets.

Court’s reasoning and conclusion: The provided text sets out the legal context and statutory provisions (ss. 553, 739, 741–743 of the Income and Corporation Taxes Act 1988) but does not include the House of Lords’ detailed reasoning or final dispositive conclusion on these issues. Accordingly the judgment’s holdings and rationale are not stated in the provided text.

Not stated in the judgment.

Appeal to the House of Lords, Appellate Committee. Prior history and earlier decisions in the litigation are not stated in the provided text.