CA overturns UT decision in ‘magic’ capital allowances avoidance scheme.
In HMRC v Altrad Services Ltd and another [2024] EWCA Civ 720 (28 June) the Court of Appeal (CA) held that the correct purposive interpretation involved looking at the intention of the legislation as a whole rather than at a snapshot of each clause.
Altrad Services Ltd and Robert Wiseman and Sons Ltd took part in a marketed tax avoidance scheme designed to exploit the capital allowances rules applying in 2010 and 2011. (The law was subsequently amended by FA 2011 s 33 to make such arrangements ineffective.)
The scheme aimed to significantly increase the quantum of capital allowances available to the taxpayer companies via a sale and leaseback arrangement with a bank. The assets would be reacquired by the companies after a few weeks on the bank exercising a put option which each company had granted...
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CA overturns UT decision in ‘magic’ capital allowances avoidance scheme.
In HMRC v Altrad Services Ltd and another [2024] EWCA Civ 720 (28 June) the Court of Appeal (CA) held that the correct purposive interpretation involved looking at the intention of the legislation as a whole rather than at a snapshot of each clause.
Altrad Services Ltd and Robert Wiseman and Sons Ltd took part in a marketed tax avoidance scheme designed to exploit the capital allowances rules applying in 2010 and 2011. (The law was subsequently amended by FA 2011 s 33 to make such arrangements ineffective.)
The scheme aimed to significantly increase the quantum of capital allowances available to the taxpayer companies via a sale and leaseback arrangement with a bank. The assets would be reacquired by the companies after a few weeks on the bank exercising a put option which each company had granted...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
