The decision of the First-tier Tribunal in Lee & Bunter v HMRC  UKFTT 279 was published on 7 April 2017.
The taxpayers had entered into tax planning arrangements reliant on the UK/Mauritian DTT to relieve their trust gains from UK capital gains tax. They were represented in their appeal by Amanda Hardy QC and Oliver Marre.
HMRC argued that the DTT could not apply, and the Tribunal rejected this argument. In applying the DTT, the Tribunal held that it is necessary to have regard to the facts of the case to determine the place of effective management, and so to decide which territory had taxing rights. Although the taxpayers contended that this was Mauritius, the Tribunal found on the facts that it was the UK and so upheld HMRC’s assessments.
The decision can be found here.