In Executors of W Connell v HMRC [2016] UKFTT 154 (3 March 2016) the FTT found that a scheme to reduce the CGT liability triggered by the redemption of loan notes failed.
The appeal concerned a 2004 tax avoidance scheme to reduce the CGT liability on the redemption of loan notes by using a deed of variation to convert them from non-qualifying corporate bonds (NQCB’s) into qualifying corporate bonds (QCB’s) and artificially their value at the time of the conversion. The conversion had been effected by removing the ability to redeem the loan notes in US dollars whilst their value had been depleted by introducing a three month long period during which the loan notes could be redeemed at a fraction of their value.
The main substantive issue was whether the deed of variation had converted the loan notes from...
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In Executors of W Connell v HMRC [2016] UKFTT 154 (3 March 2016) the FTT found that a scheme to reduce the CGT liability triggered by the redemption of loan notes failed.
The appeal concerned a 2004 tax avoidance scheme to reduce the CGT liability on the redemption of loan notes by using a deed of variation to convert them from non-qualifying corporate bonds (NQCB’s) into qualifying corporate bonds (QCB’s) and artificially their value at the time of the conversion. The conversion had been effected by removing the ability to redeem the loan notes in US dollars whilst their value had been depleted by introducing a three month long period during which the loan notes could be redeemed at a fraction of their value.
The main substantive issue was whether the deed of variation had converted the loan notes from...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
