On 25 September 2015, HMRC published Revenue and Customs Brief 15 (2015) following the Supreme Court decision in Anson v HMRC10.
As reported in the last Corporate tax update in Anson the Supreme Court held that Mr Anson was entitled to a share of the LLC’s profits as they arose. He was therefore entitled to double tax treaty relief for US tax against his UK tax liabilities.
Despite this, and after “careful consideration” HMRC’s published policy on US LLCs has not changed, as it considers the Anson decision to be fact-specific. A US LLC will, therefore, continue to be treated by HMRC for UK tax purposes as a taxable entity (and not fiscally transparent).
The Brief does, however, state that claims for double tax treaty relief in circumstances similar ro those in Anson will be considered on a case-by-case basis.
The Brief can be found here.