Neil Fletcher (Alvarez & Marsal) discusses the implications of the decision for taxpayers where this is an obvious commercial purpose and a tax advantage.
On a plain reading CTA 2009 s 441 is very simple. The question is to what extent the debits are attributable to the unallowable purpose so the initial focus is on the unallowable purpose that has been identified under CTA 2009 s 442. The Court of Appeal in Blackrock has heard nuanced arguments as to whether and how to weigh the competing purposes to reflect a just and reasonable basis. The legislation clearly gives a wide degree of discretion on this matter and it doesn’t stipulate a method. In a signal for more guidance Counsel for HMRC specifically floated that perhaps the Lords and Lady Justices in BlackRock take more time over this issue than has been previous been the case. ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Neil Fletcher (Alvarez & Marsal) discusses the implications of the decision for taxpayers where this is an obvious commercial purpose and a tax advantage.
On a plain reading CTA 2009 s 441 is very simple. The question is to what extent the debits are attributable to the unallowable purpose so the initial focus is on the unallowable purpose that has been identified under CTA 2009 s 442. The Court of Appeal in Blackrock has heard nuanced arguments as to whether and how to weigh the competing purposes to reflect a just and reasonable basis. The legislation clearly gives a wide degree of discretion on this matter and it doesn’t stipulate a method. In a signal for more guidance Counsel for HMRC specifically floated that perhaps the Lords and Lady Justices in BlackRock take more time over this issue than has been previous been the case. ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
