Summary
The taxpayer fell to be treated as a member of an Isle of Man partnership because he was entitled to a share of the income of the partnership and the term ‘income’ in the relevant legislation (ITTOIA 2005, s 858(4)) meant the profits of the partnership.
Background
The appellant, an electrical engineering consultant resident in the UK, entered into a marketed tax avoidance scheme in April 2001.
The scheme involved setting up an Isle of Man (IoM) trust of which the appellant was the settlor, and in which he had an interest in possession, or a right to income. The trust became a partner in an IoM partnership, which in turn entered into a contract with the appellant to provide his services. Under his contract with the partnership, the appellant was entitled to an annual fee of £15,000, together with a share of the partnership profits as a
