For the first time, the FTT has been asked to consider a principal purpose test in a double tax treaty.

With a win for the taxpayer at this stage – which one might consider to be the right outcome, albeit not necessarily for the reasons advanced in the judgment – it remains to be seen whether HMRC will launch an appeal and, if so, whether the decision will stand up to the scrutiny of higher courts. But for now, at least, taxpayers should take some comfort from the FTT’s pragmatic and policy-driven approach in Burlington Loan Management DAC v HMRC.

Laura McDaniel from our London Tax team considers this case in detail in our new briefing.

More detail about bringing tax treaty claims is included in our Contentious Tax Tool. This tool helps navigate risks arising on tax-related disputes and investigations by operating as a checklist to consult both when a tax dispute is on the horizon or a new issue arises on an ongoing dispute. For further details and to request access to our Contentious Tax Tool, please contact