In Land Securities plc v HMRC (TC01442 – 13 October) a company (L) entered into a series of transactions between March and September 2003 which were intended to exploit a perceived loophole in TCGA s 106 and create a capital loss for tax purposes of £200 000 000.
HMRC rejected the claims on the basis that the value-shifting provisions of TCGA 1992 s 30 applied to diminish the loss. L appealed.
The First-tier Tribunal reviewed the evidence in detail and dismissed the appeal.
Judge Nowlan accepted the company’s contention that there had been a disposal which was within the scope of s 106.
However he held that the combined effect of ss 30(9) and 106 was that in the circumstances here there should be an ‘adjustment and increase to the disposal consideration’ and that...
