POEM and professional advisers

The decision of the Special Commissioners in Smallwood v HMRC SpC 669 has been reversed by the High Court.  It looks unlikely that the Revenue will appeal. 

The role of professional advisers was held by the Special Commisioners to be an important factor when determining the trust's place of effective management for treaty tie breaker purposes.  With the High Court holding that there was no dual residency and, therefore, no need to consider the tie breaker clause, the court declined the opportunity to address the POEM aspect.  With the earlier decision causing some consternation, and being made by an acknowledged authority in the field, it remains now to be seen whether the Revenue will seek to rely on the judgment of Dr Avery-Jones as being persuasive when considering other instances in which the model OECD tie breaker is in point.