Tax Law · Upper Tribunal (Tax and Chancery Chamber)
Knights Developments Limited v The Commissioners for HMRC
Checked against the judgment on 4 September 2026 · how we verify
Facts
Knights Developments Limited ("KDL") is an Isle of Man resident company, incorporated there on 27 November 2001 and at all material times a member of the Dandara group founded by Mr Daniel Tynan, whose ultimate controlling party was Tynan Family Trust Co Limited as trustee of the Tynan Family Trust 1419. KDL carried on a trade of dealing in and developing United Kingdom land, having contracted to acquire land at Knights Wood, Tunbridge Wells from Kilmartin Properties (TW) Limited by agreement dated 12 March 2010 for £9 million exclusive of VAT. It treated the land as trading stock, engaged Dandara Limited under design and build contracts to construct the dwellings and under a 6 May 2014 agency agreement to market them, but took all strategic decisions in the Isle of Man. It is common ground that KDL had no United Kingdom permanent establishment and that its profits were trading profits, income in nature. For the accounting periods ending 30 June 2017 to 30 June 2021 KDL returned those profits but claimed exemption under the United Kingdom-Isle of Man double taxation arrangements. HMRC issued closure notices on 28 July 2022 and 1 September 2022 assessing additional corporation tax of some £5.4 million. KDL's appeals were transferred from the First-tier Tribunal to the Upper Tribunal, and stand as the lead appeal for related group companies.
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