Upper Tribunal decision in favour of General Electric

Hui Ling McCarthy

The Upper Tribunal has upheld the appeal of General Electric Financial Investments Ltd (“GEFI Ltd”) in this case concerning the US/UK Double Tax Treaty.  While the Upper Tribunal upheld the First-tier Tribunal’s decision that GEFI Ltd did not have a permanent establishment in the US, it overturned the FtT’s decision on Treaty residence meaning that GEFI Ltd succeeded overall.

The case addresses both the residence article and the permanent establishment article, and their application to the US concept of “share stapling”.

Philip Baker KC and John Brinsmead-Stockham KC acted for GEFI Ltd (Appellant) and were instructed by Slaughter & May.

Hui Ling McCarthy KC and Barbara Belgrano acted for HMRC (Respondent).

The Upper Tribunal’s decision can be found here.