In Biffa (Jersey) v HMRC [2014] UKFTT 982 – 23 October 2014 the FTT found that FA 2003 s 195 did not mean that a company was treated as not having acquired shares.
Biffa issued 200 million shares to Biffa Corporate which in turn transferred them to Biffa Holdings. Biffa Holdings then sold 200 million shares in Biffa for £200 million to Biffa which cancelled them. On the same day Biffa issued 200 million shares to Biffa Corporate for £214 million which it then sold to Biffa Holdings.
Biffa Holdings considered that the difference between the £200 million which it received on the sale of the Biffa shares and the £214 million it paid to buy Biffa shares should be treated as interest on a deemed loan of £200 million by Biffa to Biffa Holdings. HMRC accepted this treatment.
Biffa...
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In Biffa (Jersey) v HMRC [2014] UKFTT 982 – 23 October 2014 the FTT found that FA 2003 s 195 did not mean that a company was treated as not having acquired shares.
Biffa issued 200 million shares to Biffa Corporate which in turn transferred them to Biffa Holdings. Biffa Holdings then sold 200 million shares in Biffa for £200 million to Biffa which cancelled them. On the same day Biffa issued 200 million shares to Biffa Corporate for £214 million which it then sold to Biffa Holdings.
Biffa Holdings considered that the difference between the £200 million which it received on the sale of the Biffa shares and the £214 million it paid to buy Biffa shares should be treated as interest on a deemed loan of £200 million by Biffa to Biffa Holdings. HMRC accepted this treatment.
Biffa...
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