Vol 18 (2021) - Issue 1

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Lomas and others v Revenue and Customs Commissioners [2019] UKSC 12

Synopsis
The Supreme Court upheld the decision of the Court of Appeal to the effect that statutory interest under the Insolvency Rules falls within the meaning of 'yearly interest' under the Income Tax Act, such that the administrators of LBIE were required to deduct income tax prior to paying statutory interest to creditors with proved claims. Notably, the Supreme Court considered certain characteristics of statutory interest and did not accept the argument that these were at odds with the characteristics of 'yearly interest' discernible from the case law.