Beneficial ownership in domestic tax legislation, some clarity, but far from ‘well established’: <i>Hargreaves Property Holdings Ltd v HMRC</i> [2024] EWCA Civ 365

The concept of beneficial ownership is extensively used in domestic tax legislation, but several decades of inconsistent case law have muddied the waters as to exactly what it means. With the leading cases stopping short of the apex court, it is difficult to reconcile the cases and come up with a clear definition of beneficial ownership. The recent Hargreaves 1 decision by Falk LJ (with whom Nugee and Peter Jackson LJJ agreed) represents the most structured judicial attempt to rationalise the concept to date. This note suggests that, contrary to Falk LJ’s statement that the concept is ‘well established’, 2 the law pre- Hargreaves was far from clear. This situation has since been greatly improved through the efforts of Falk LJ, though further questions remain for future judicial clarification.