Commissioners for HMRC v Joint Administrators of Lehman Brothers International (Europe) (“LBIE”) (in administration) (2017)


Statutory interest payable by the administrators of LBIE to its creditors from the surplus in the administration 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 its consequential tax deduction procedure. In so holding, the Court of Appeal overturned the decision of Hildyard J below.