Burlington in the UT: a clearer approach

The Upper Tribunal in Burlington Loan Management DAC dismissed HMRC’s appeal, holding that HMRC was wrong to apply a UKcentric approach to the interpretation of the UK/Irish double tax treaty and instead applying one based on the object and purpose of the treaty. Only arrangements which secure an allocation of taxing rights between the UK and Ireland that is contrary to that object and purpose would fall afoul of the anti-abuse rule in the treaty.