The Court of Appeal judgment restores order, write Sarah Bond and Helen Buchanan (Freshfields Bruckhaus Deringer).
The recent decision of the Court of Appeal (CA) in BlackRock Holdco 5 LLC v HMRC [2024] EWCA Civ 330 is the latest judicial pronouncement on two issues arising from the BlackRock group’s $13.5bn acquisition of the US business of Barclays Global Investors in 2009:
transfer pricing; and
the application of the loan relationship unallowable purpose rules (CTA 2009 s 441 and 442).
These issues arose in relation to $4bn of intra-group debt issued by a UK resident Delaware LLC (LLC5) which it used to fund the subscription of preference shares in the US resident Delaware LLC bidco (LLC6) and in respect of which it claimed interest deductions for UK tax purposes. The common (ordinary) shares in LLC6 were subscribed by a further US resident Delaware LLC (LLC4) which was...
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The Court of Appeal judgment restores order, write Sarah Bond and Helen Buchanan (Freshfields Bruckhaus Deringer).
The recent decision of the Court of Appeal (CA) in BlackRock Holdco 5 LLC v HMRC [2024] EWCA Civ 330 is the latest judicial pronouncement on two issues arising from the BlackRock group’s $13.5bn acquisition of the US business of Barclays Global Investors in 2009:
transfer pricing; and
the application of the loan relationship unallowable purpose rules (CTA 2009 s 441 and 442).
These issues arose in relation to $4bn of intra-group debt issued by a UK resident Delaware LLC (LLC5) which it used to fund the subscription of preference shares in the US resident Delaware LLC bidco (LLC6) and in respect of which it claimed interest deductions for UK tax purposes. The common (ordinary) shares in LLC6 were subscribed by a further US resident Delaware LLC (LLC4) which was...
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:
