The case concerned a "round the world" capital gains tax (CGT) avoidance scheme involving a trust, taking advantage of the (then) terms of the double taxation treaty between the UK and Mauritius (the treaty). The Court of Appeal found in favour of HMRC and reversed the High Court's decision.

The Court of Appeal held that the trust was resident both in Mauritius and the UK for the purpose of the treaty, and although the dual residence was not concurrent, the tie-breaker test (which applies in cases of dual residence, and which involves determining where the "place of effective management" (POEM) is) did apply. The Court of Appeal upheld the Special Commissioner's finding that the POEM was in the UK and accordingly UK CGT was chargeable on the disposal of the shares by the trustees.