Upper Tribunal overturns FTT on transfer pricing and unallowable purpose
In HMRC v BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC) (19 July) the Upper Tribunal (UT) allowed HMRC’s appeal and disallowed the company’s non-trading loan relationship debits under the transfer pricing rules. It also held that had those rules not applied to disallow the debits they would have been disallowed under the loan relationships unallowable purpose rule.
The taxpayer (BH LLC) was a Delaware-incorporated but UK resident company formed as part of the structure for the acquisition by its parent company of the Barclays Global Investor business in 2009. The company issued several tranches of loan notes to its immediate parent company and claimed non-trading loan relationship debits for the interest paid on the loans over a period of six years. HMRC disallowed the debits on two grounds: the loans differed from those that would have...
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Upper Tribunal overturns FTT on transfer pricing and unallowable purpose
In HMRC v BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC) (19 July) the Upper Tribunal (UT) allowed HMRC’s appeal and disallowed the company’s non-trading loan relationship debits under the transfer pricing rules. It also held that had those rules not applied to disallow the debits they would have been disallowed under the loan relationships unallowable purpose rule.
The taxpayer (BH LLC) was a Delaware-incorporated but UK resident company formed as part of the structure for the acquisition by its parent company of the Barclays Global Investor business in 2009. The company issued several tranches of loan notes to its immediate parent company and claimed non-trading loan relationship debits for the interest paid on the loans over a period of six years. HMRC disallowed the debits on two grounds: the loans differed from those that would have...
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