UK Court of Appeals Holds Central Management and Control Test Not Suitable to Determine Place of Effective Management Under Mauritius-UK Tax Treaty

The UK Court of Appeal issued a judgment on 1 July 2025 in the case Geoffrey Richard Haworth & Ors v The Commissioners for HMRC [2025] EWCA Civ 822. The case concerned whether UK-resident settlors could avoid capital gains tax (CGT) on trust disposals by temporarily appointing Mauritius-based trustees. The case concerned a tax planning scheme involving family trusts that held shares in two companies. To avoid capital gains tax (CGT) on gains from the planned merger and flotation of these…