Partner Nicola McKinney comments on the cum-ex trading scandal in City A.M.

In light of a Supreme Court ruling which saw the founder of hedge fund Solo Capital Partners lose a bid to prevent a £1.4bn trial over cum-ex tax trades, Partner Nicola McKinney comments on the wider implications of this case.

Nicola’s comments were published in City A.M., 13 November 2023, and can be found here.

“Comments in the ruling in this case may be seen as part of a growing trend for the English courts to take a robust, rather than cautious, approach to questions of judicial comity and international politics.

“The likelihood is that this judgment can be easily applied by tax authorities – or indeed any state-related entity which has its own legal personality – in other jurisdictions where frauds are alleged to have occurred, causing loss.

“The impact on the English courts as a result of this ruling is also likely to be considerable. The liability and quantum trial of the Danish tax authority’s claims are scheduled to begin in 2024, and to last for well over a year. That scale of action, if extrapolated to actions by other tax authorities, could mean a significant volume of the business of the Commercial Court being dedicated to this type of action over the coming years.”