The Supreme Court has refused the taxpayer permission to appeal in Vocalspruce [2014] EWCA Civ 1302, ‘because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time bearing in mind that the case
The Supreme Court has refused the taxpayer permission to appeal in Vocalspruce [2014] EWCA Civ 1302, ‘because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time bearing in mind that the case has already been the subject of judicial decision and reviewed on appeal’. The Court of Appeal ruling is therefore final.
In that case, Vocalspruce, a subsidiary of a London-based property business, lost against HMRC over an avoidance scheme used by a number of large businesses. The court found that, under the related party rule, the scheme, which involved the intra-group acquisition of loan notes, was actually taxable and thus failed. The notes were transferred in consideration for the issue of shares at a premium, paid up by capitalising profits and appropriating those to a share premium account. HMRC said the tax at stake was £85.4m.
Deloitte has reported that ‘a number of cases’ stood behind this lead case, but since the relevant legislation – on the tax treatment of loan relationships – has been heavily amended, the decision is ‘of historical importance only’.
The Supreme Court has refused the taxpayer permission to appeal in Vocalspruce [2014] EWCA Civ 1302, ‘because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time bearing in mind that the case
The Supreme Court has refused the taxpayer permission to appeal in Vocalspruce [2014] EWCA Civ 1302, ‘because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time bearing in mind that the case has already been the subject of judicial decision and reviewed on appeal’. The Court of Appeal ruling is therefore final.
In that case, Vocalspruce, a subsidiary of a London-based property business, lost against HMRC over an avoidance scheme used by a number of large businesses. The court found that, under the related party rule, the scheme, which involved the intra-group acquisition of loan notes, was actually taxable and thus failed. The notes were transferred in consideration for the issue of shares at a premium, paid up by capitalising profits and appropriating those to a share premium account. HMRC said the tax at stake was £85.4m.
Deloitte has reported that ‘a number of cases’ stood behind this lead case, but since the relevant legislation – on the tax treatment of loan relationships – has been heavily amended, the decision is ‘of historical importance only’.
