Following a raft of recent case law, HMRC’s has revised its guidance on the unallowable purpose rules. Helen Buchanan and Sarah Bond (Freshfields Bruckhaus Deringer) consider what it says about HMRC’s approach to purpose-based enquiries and the situations which HMRC would normally regard as involving a tax avoidance purpose.
Following a raft of recent case law HMRC has updated its guidance on the loan relationship unallowable purpose rule in CTA 2009 ss 441 and 442. If a loan relationship of a company has an unallowable purpose s 441 applies to prevent a company from bringing into account so much of any debits in respect of that relationship as on a just and reasonable apportionment are attributable to the unallowable purpose. The meaning of ‘unallowable purpose’ is given in s 442 as (put simply) a main purpose for which the company is party to the loan relationship of securing...
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Following a raft of recent case law, HMRC’s has revised its guidance on the unallowable purpose rules. Helen Buchanan and Sarah Bond (Freshfields Bruckhaus Deringer) consider what it says about HMRC’s approach to purpose-based enquiries and the situations which HMRC would normally regard as involving a tax avoidance purpose.
Following a raft of recent case law HMRC has updated its guidance on the loan relationship unallowable purpose rule in CTA 2009 ss 441 and 442. If a loan relationship of a company has an unallowable purpose s 441 applies to prevent a company from bringing into account so much of any debits in respect of that relationship as on a just and reasonable apportionment are attributable to the unallowable purpose. The meaning of ‘unallowable purpose’ is given in s 442 as (put simply) a main purpose for which the company is party to the loan relationship of securing...
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