The consultation on hedging risks for future share transactions and the FTT decision in Hargreaves are some of the recent developments reviewed by Mike Lane and Zoe Andrews (Slaughter and May).
Consultation on improvements to the tax regime for hedging risks on future share transactions
Draft regulations have been published for consultation until 24 January to create a fair and internationally competitive hedging regime for foreign exchange risks on anticipated future share transactions which will also support the new asset holding company regime.
Under current tax rules derivative contracts entered into to hedge currency risks on anticipated acquisitions and disposals of shares are often not fully effective in removing volatility because the companies’ tax liabilities can still be exposed to exchange rate fluctuations. It can be particularly difficult to achieve an effective post-tax hedge of currency risks relating to a future acquisition as the company does...
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The consultation on hedging risks for future share transactions and the FTT decision in Hargreaves are some of the recent developments reviewed by Mike Lane and Zoe Andrews (Slaughter and May).
Consultation on improvements to the tax regime for hedging risks on future share transactions
Draft regulations have been published for consultation until 24 January to create a fair and internationally competitive hedging regime for foreign exchange risks on anticipated future share transactions which will also support the new asset holding company regime.
Under current tax rules derivative contracts entered into to hedge currency risks on anticipated acquisitions and disposals of shares are often not fully effective in removing volatility because the companies’ tax liabilities can still be exposed to exchange rate fluctuations. It can be particularly difficult to achieve an effective post-tax hedge of currency risks relating to a future acquisition as the company does...
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:
