Helen Buchanan and Sarah Bond (Freshfields Bruckhaus Deringer) share their experience of the approach HMRC is taking to unallowable purposes enquiries, in particular under CTA 2009 s 441.
The tax code is littered with unallowable purposes rules but the loan relationship unallowable purposes rules seem to be particularly in vogue as HMRC tackle what they perceive to be artificial (mainly intragroup) financing structures.
Legislation
The loan relationship unallowable purposes rules are contained in CTA 2009 ss 441 and 442. Section 441 applies if a loan relationship of a company has an unallowable purpose. Where it applies the company is prevented 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.
Section 442 sets out what an unallowable purpose is. A loan relationship of a company has an unallowable purpose if...
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Helen Buchanan and Sarah Bond (Freshfields Bruckhaus Deringer) share their experience of the approach HMRC is taking to unallowable purposes enquiries, in particular under CTA 2009 s 441.
The tax code is littered with unallowable purposes rules but the loan relationship unallowable purposes rules seem to be particularly in vogue as HMRC tackle what they perceive to be artificial (mainly intragroup) financing structures.
Legislation
The loan relationship unallowable purposes rules are contained in CTA 2009 ss 441 and 442. Section 441 applies if a loan relationship of a company has an unallowable purpose. Where it applies the company is prevented 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.
Section 442 sets out what an unallowable purpose is. A loan relationship of a company has an unallowable purpose if...
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:
