Scrip dividends not income in trust law: Upper Tribunal not bound by High Court decision | Practical Law

Scrip dividends not income in trust law: Upper Tribunal not bound by High Court decision | Practical Law

The Upper Tribunal has held that trustees who receive scrip dividends should not treat them as income receipts for any purpose other than income tax and that the tribunal was not bound by a High Court decision that scrip dividends should be treated as income for the purposes of both tax and trust law (Pierce and others v Wood and others [2009] EWHC 3225 (Ch)). (Gilchrist v HMRC [2014] UKUT 169 (TCC).)

Scrip dividends not income in trust law: Upper Tribunal not bound by High Court decision

Practical Law UK Legal Update Case Report 1-568-5665 (Approx. 6 pages)

Scrip dividends not income in trust law: Upper Tribunal not bound by High Court decision

by Practical Law Private Client
Published on 22 May 2014 • England, Wales
The Upper Tribunal has held that trustees who receive scrip dividends should not treat them as income receipts for any purpose other than income tax and that the tribunal was not bound by a High Court decision that scrip dividends should be treated as income for the purposes of both tax and trust law (Pierce and others v Wood and others [2009] EWHC 3225 (Ch)). (Gilchrist v HMRC [2014] UKUT 169 (TCC).)