Gilchrist (as trustee of the J P Gilchrist 1993 Settlement) v Revenue and Customs Commissioners [2014] UKUT 0169 (TCC), [2014] All ER (D) 25 (May)
The exercise of ascertaining the scope of the deeming effect of s 249(6) of the Corporation Taxes Act 1988 required the court to consider the approach properly taken to the construction of deeming provisions generally and to apply that approach to s 249(6), bearing in mind the text of s 249(6), its statutory context and its statutory purpose. There was no suggestion, in the text of s 249(6), as construed in Howell v Trippier [2004] EWCA Civ 885 that the deeming effect of s 249(6) extended to statutes beyond the 1988 Act or to the area of general trust law. Nor would one expect there to be. The 1988 Act was not a statute which governed general trust law. Section 249(6)(b) gave rise to notional income, being notional trust income, which meant that the rate applicable to trusts was levied on the appropriate amount in cash deemed to be received by the trustees.
The correct approach to deeming provisions did not permit
