Successful appellant applying for indemnity costs
In GP Curran v HMRC (No. 2) (TC02327 – 30 October) a company director (C) had been offered the opportunity to invest in a property development company (S). He borrowed £1m from a finance company (T) and subscribed for a £1m loan note in S. On 5 April 2002 C made a payment of £899 995 to T which was described as a prepayment of interest due on the loan (which had been expressed as lasting for 30 years). On his 2001/02 tax return he claimed tax relief on the basis that this was a payment of interest. HMRC rejected the claim on the basis that the payment was partly of capital rather than interest and issued an amendment to C’s return. C appealed. In the meantime C had entered into a similar...
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Successful appellant applying for indemnity costs
In GP Curran v HMRC (No. 2) (TC02327 – 30 October) a company director (C) had been offered the opportunity to invest in a property development company (S). He borrowed £1m from a finance company (T) and subscribed for a £1m loan note in S. On 5 April 2002 C made a payment of £899 995 to T which was described as a prepayment of interest due on the loan (which had been expressed as lasting for 30 years). On his 2001/02 tax return he claimed tax relief on the basis that this was a payment of interest. HMRC rejected the claim on the basis that the payment was partly of capital rather than interest and issued an amendment to C’s return. C appealed. In the meantime C had entered into a similar...
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