FTT allows all loan relationship debits on intra-group loan notes
In Blackrock Holdco 5 LLC v HMRC [2020] UKFTT 443 (TC) (3 November 2020) the First-tier Tribunal (FTT) found in favour of the taxpayer in respect of both a transfer pricing challenge and an unallowable purpose challenge to the taxpayer’s loan relationship debits on intra-group debt in the context of a third party corporate acquisition.
Blackrock Holdco LLC 5 (LLC 5) issued several tranches of loan notes to its parent company as part of the acquisition structure for the Barclays Global Investor (BGI) business in 2009. LLC 5 claimed deductions on the interest paid on the loans over a period of approximately six years.
HMRC challenged the deduction of interest on two grounds:
whether the loans differ from those that would have been made between independent enterprises (the transfer pricing question); and
whether securing a tax advantage for LLC 5 (or another person)...
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FTT allows all loan relationship debits on intra-group loan notes
In Blackrock Holdco 5 LLC v HMRC [2020] UKFTT 443 (TC) (3 November 2020) the First-tier Tribunal (FTT) found in favour of the taxpayer in respect of both a transfer pricing challenge and an unallowable purpose challenge to the taxpayer’s loan relationship debits on intra-group debt in the context of a third party corporate acquisition.
Blackrock Holdco LLC 5 (LLC 5) issued several tranches of loan notes to its parent company as part of the acquisition structure for the Barclays Global Investor (BGI) business in 2009. LLC 5 claimed deductions on the interest paid on the loans over a period of approximately six years.
HMRC challenged the deduction of interest on two grounds:
whether the loans differ from those that would have been made between independent enterprises (the transfer pricing question); and
whether securing a tax advantage for LLC 5 (or another person)...
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:
