Carried forward losses: In Blackfriars Hotel (UK) Holdings Ltd v HMRC [2024] UKFTT 1095 (TC) (6 December 2024) the FTT considered an appeal by the taxpayer against a decision of HMRC to deny the use of carried-forward non-trading loan relationship deficits against certain profits on the basis that the anti-avoidance provision at CTA 2010 s 730G applied. The deficits arose as a result of interest payments to a third-party bank exceeding interest receipts received from a subsidiary and the appellant entered into arrangements with the subsidiary whereby a new loan was made funded by a capital reduction in the subsidiary and reinvestment of a consequent dividend. The FTT concluded that in order for the legislation to apply it was not necessary for all the taxpayer’s profits to be ‘relevant profits’ (being those resulting from the tax arrangements) and that tax arrangements only need be an efficient cause...
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Carried forward losses: In Blackfriars Hotel (UK) Holdings Ltd v HMRC [2024] UKFTT 1095 (TC) (6 December 2024) the FTT considered an appeal by the taxpayer against a decision of HMRC to deny the use of carried-forward non-trading loan relationship deficits against certain profits on the basis that the anti-avoidance provision at CTA 2010 s 730G applied. The deficits arose as a result of interest payments to a third-party bank exceeding interest receipts received from a subsidiary and the appellant entered into arrangements with the subsidiary whereby a new loan was made funded by a capital reduction in the subsidiary and reinvestment of a consequent dividend. The FTT concluded that in order for the legislation to apply it was not necessary for all the taxpayer’s profits to be ‘relevant profits’ (being those resulting from the tax arrangements) and that tax arrangements only need be an efficient cause...
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