Novation of derivative contracts between companies of the same group
In HMRC v Bristol and West [2016] EWCA Civ 397 (27 April 2016) the Court of Appeal found that HMRC had not issued a closure notice and that the disregard provisions of FA 2002 Sch 26 para 28 could only apply to a novation between group companies if both parties came within its scope.
The appeal raised two discrete issues arising from tax litigation in the FTT and UT by Bristol & West (B&W) a member of the Bank of Ireland group. These concerned the appropriate corporation tax treatment of the novation of a portfolio of ‘in the money’ interest-rate swaps (‘the novation’) to another company in the same group Bank of Ireland Business Finance (BIBF) for a premium of £91m.
The first issue was whether in the course of correspondence between HMRC and B&W ...
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Novation of derivative contracts between companies of the same group
In HMRC v Bristol and West [2016] EWCA Civ 397 (27 April 2016) the Court of Appeal found that HMRC had not issued a closure notice and that the disregard provisions of FA 2002 Sch 26 para 28 could only apply to a novation between group companies if both parties came within its scope.
The appeal raised two discrete issues arising from tax litigation in the FTT and UT by Bristol & West (B&W) a member of the Bank of Ireland group. These concerned the appropriate corporation tax treatment of the novation of a portfolio of ‘in the money’ interest-rate swaps (‘the novation’) to another company in the same group Bank of Ireland Business Finance (BIBF) for a premium of £91m.
The first issue was whether in the course of correspondence between HMRC and B&W ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
