Update – UK Withholding Tax - Permission to Appeal to the Supreme Court of the United Kingdom – 25 May 2018

On 19 December 2017 the Court of Appeal handed down its judgment on HMRC’s appeal against the decision of Hildyard J dated 11 October 2016 (the “Judgment”) in respect of the application of withholding tax to statutory interest.  The Order made by the Court of Appeal pursuant to the Judgment was posted on the website on 20 December 2017.  The Court of Appeal refused permission to appeal to the Supreme Court of the United Kingdom (the “Supreme Court”), with the consequence that the Joint Administrators sought permission from the Supreme Court itself to appeal against the Court of Appeal’s decision.

On 15 May 2018, the Supreme Court ordered that permission to appeal be granted to the Joint Administrators.  By notice of intention to proceed filed with the Supreme Court on 24 May 2018, the Joint Administrators confirmed their intention to proceed with the appeal. The Joint Administrators will provide creditors with further updates in due course including once the hearing, which is likely to be some time away, has been listed.

In the context of the proposed scheme of arrangement for LBIE (see most recent announcement here), the Joint Administrators also refer creditors to their announcement dated 18 April 2018, which provides details of HMRC’s position with respect to payments of statutory interest to creditors pending the Supreme Court’s decision

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at LBIETax@lbia-eu.com