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Lehman - Court of Appeal Judgment on withholding tax

Court determined interest under Insolvency Rules subject to withholding tax. Catherine Addy QC was instructed by HMRC.

On 19 December 2017 the Court of Appeal allowed HMRC’s appeal, determining that statutory interest payable under Rule 2.88(7) of the Insolvency Rules 1986 and Rule 14.23(7) of the Insolvency Rules 2016 is “yearly interest” for the purposes of section 874(1) of the Income Tax Act 2007 and therefore subject to withholding tax. Catherine Addy QC was instructed by HMRC.