Oliver Marre (5 Stone Buildings) examines a First-tier Tribunal decision that is important for anyone considering inter-group loan structuring.
One year and one month after the hearing the decision in JTI Acquisition Company (2011) Ltd v HMRC (TC/2019/04496 decision published 19 April 2022) has been released. The case gives detailed treatment to the main purpose test in the CTA 2009 loan relationship rules requiring the tribunal to determine whether a tax advantage was a predominant motive in the appellant’s entering into the relevant loans. As such it is of importance to anyone considering inter-group loan structuring and more widely relevant to advisers looking at purpose tests across the tax landscape.
The facts and issues in the case
The appellant a newly-incorporated company resident in the UK was a member of a corporate group with its ultimate parent in the US. It borrowed from its...
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Oliver Marre (5 Stone Buildings) examines a First-tier Tribunal decision that is important for anyone considering inter-group loan structuring.
One year and one month after the hearing the decision in JTI Acquisition Company (2011) Ltd v HMRC (TC/2019/04496 decision published 19 April 2022) has been released. The case gives detailed treatment to the main purpose test in the CTA 2009 loan relationship rules requiring the tribunal to determine whether a tax advantage was a predominant motive in the appellant’s entering into the relevant loans. As such it is of importance to anyone considering inter-group loan structuring and more widely relevant to advisers looking at purpose tests across the tax landscape.
The facts and issues in the case
The appellant a newly-incorporated company resident in the UK was a member of a corporate group with its ultimate parent in the US. It borrowed from its...
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:
