UK Dandara subsidiary loses £5.4 million tax court battle

A UK court has ruled corporation tax applies to profits made by a Manx-based company.

Knights Developments was involved in an appeal about whether profits from a Kent property development were taxed in the UK under double-taxation arrangements with the Island.

HMRC wanted £5.4 million in corporation tax from the company, which is part of the Dandara group, over the space of four years.

In a ruling, the Upper Tribunal rejected its argument the UK-Isle of Man tax agreement meant it didn't have to pay.