In this month’s review, Mike Lane and Zoe Andrews (Slaughter and May) consider the Upper Tribunal decisions in JTI Acquisitions and Hotel La Tour, and HMRC’s latest annual report.
JTI Acquisitions: scope of the loan relationships unallowable purpose test
The Upper Tribunal (UT) in JTI Acquisitions Company (2011) Ltd v HMRC[2023] UKUK 194 (TCC) took a similar approach to the unallowable purpose rule (CTA 2010 ss 441 and 442) as it did in both BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC) and Kwik-Fit [2022] UKUT 314 (TCC).
In brief a funding structure was put in place by Joy Global a US-headed group for the acquisition of another US-headed group using a UK acquisition vehicle (JTI) with debt pushed down to JTI from the US. It resulted in approximately £40m of non-trade loan relationship interest debits being claimed as group relief. HMRC issued closure...
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In this month’s review, Mike Lane and Zoe Andrews (Slaughter and May) consider the Upper Tribunal decisions in JTI Acquisitions and Hotel La Tour, and HMRC’s latest annual report.
JTI Acquisitions: scope of the loan relationships unallowable purpose test
The Upper Tribunal (UT) in JTI Acquisitions Company (2011) Ltd v HMRC[2023] UKUK 194 (TCC) took a similar approach to the unallowable purpose rule (CTA 2010 ss 441 and 442) as it did in both BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC) and Kwik-Fit [2022] UKUT 314 (TCC).
In brief a funding structure was put in place by Joy Global a US-headed group for the acquisition of another US-headed group using a UK acquisition vehicle (JTI) with debt pushed down to JTI from the US. It resulted in approximately £40m of non-trade loan relationship interest debits being claimed as group relief. HMRC issued closure...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
