Ardmore Construction – Court of Appeal of England and Wales accepts that the determination of source of income is to be made on a multifactorial and practical basis

In Folio S5-F2-C1, CRA states that the source of interest generally is in the country of residence of the debtor.

Lady Justice Arden noted the agreement of the parties before her that the question of source was a “multifactorial” one, so that the residence of the debtor would not always be determinative, and also referred to jurisprudence indicating that the question of source should be determined from a practical rather than juristic perspective. However, in circumstances where the debtor actually used the borrowed funds in its active business in the country of its residence, she considered the finding of the Tribunals below that the source was in that country should not be interfered with.

Neal Armstrong. Summary of Ardmore Construction Ltd v Revenue and Customs [2018] EWCA Civ 1438 under s. 126(1).