Tax Treaty Case Law around the Globe 2014

S. 31Chapter 4 United Kingdom: Michael Macklin v. Commissioners for Her Majesty's Revenue and Customs

Philip Baker

4.1. Introduction

This contribution concerns a decision of the First-tier Tribunal (Tax Chamber) delivered on 10 October 2013. The Tribunal members were Judge John Walters QC and Mr Derek Speller. It concerned the interpretation of provisions in article 17 of the United Kingdom-United States Double Taxation Convention of 24 July 2001. The case concerned the meaning of a pension scheme "established in a Contracting State".

4.2. Facts of the case

The background facts are relatively straightforward. Mr Maplin is a UK-resident individual. From 1976 to 1998 he worked for the World Bank in the United States. While employed by the World Bank, he participated in the World Bank's Staff Retirement Plan (referred to in the case as the "SRP"). After he ceased working for the World Bank he returned to live in the United Kingdom and began drawing his pension. He claimed that the pension was exempt from tax in the United Kingdom under article 17(l)(b) of the United Kingdom-United States Double Taxation Convention, which provided as follows:

Article 17: Pensions, Social Security, Annuities, Alim...