The loan relationships code has
proved to be fertile ground for tax planners principally because accounting principles will not necessarily produce the ‘right’ answer from a tax perspective. In the last three months alone we have seen three judgments from the First-tier Tribunal − Cater Allen [2015] UKFTT 0232 Abbey National Treasury Services (ANTS) [2015] UKFTT 0162 and most recently GDF Suez Teesside [2015] UKFTT 0413 − which hinged on the difference between tax and accounting.
The FTT has in fact backed HMRC in all three cases. But HMRC clearly decided some time ago that it needed a new weapon in...
