Part of loan relationship loss disallowed as referable to period of non-UK tax residence.
In UK Care No. 1 Ltd v HMRC [2024] UKFTT 542 (TC) (13 June) the FTT considered the disallowance of imported losses provisions at CTA 2009 s 327. The provisions operate to disallow a loss in connection with a loan relationship to the extent that the loss is ‘referable’ to a time when the company seeking to bring the loss into account would not have been subject to corporation tax on any profits from the loan relationship.
The appellant was a Guernsey tax resident company which issued certain loan notes secured by the UK care home business of the BUPA group. In 2016 BUPA wanted to sell a number of care homes which were part of the security arrangements for the loan notes. In order to do so BUPA acquired the appellant (with the...
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Part of loan relationship loss disallowed as referable to period of non-UK tax residence.
In UK Care No. 1 Ltd v HMRC [2024] UKFTT 542 (TC) (13 June) the FTT considered the disallowance of imported losses provisions at CTA 2009 s 327. The provisions operate to disallow a loss in connection with a loan relationship to the extent that the loss is ‘referable’ to a time when the company seeking to bring the loss into account would not have been subject to corporation tax on any profits from the loan relationship.
The appellant was a Guernsey tax resident company which issued certain loan notes secured by the UK care home business of the BUPA group. In 2016 BUPA wanted to sell a number of care homes which were part of the security arrangements for the loan notes. In order to do so BUPA acquired the appellant (with the...
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