U.K. Government Wins $750 Million Share-Lending Tax Case

The U.K. won’t have to return more than 600 million pounds ($750 million) of tax after the tax authority won a Supreme Court case Wednesday on the lawfulness of its approach to the taxation of manufactured overseas dividends.

Her Majesty’s Revenue & Customs had lost the argument to Coal Staff Superannuation Scheme Trustees Limited in lower courts. The amount at stake was around 8.8 million pounds, but this battle serves as a test case for more than 600 million pounds of withholding tax HMRC already has collected.

The tax at stake is paid on manufactured overseas dividends. Manufactured ...