HMRC is taking an increasingly aggressive approach to disputes involving CTA 2009 s 441 – the targeted anti-avoidance rule on unallowable purpose. Those with genuine commercial borrowing, however, should stand firm, argues Heather Self (Pinsent Masons)
‘The time has come ’ the Walrus said ‘to talk of many things.’ It is in my view time for a fresh look at CTA 2009 s 441 – the paradigm targeted anti-avoidance provision (TAAR) on unallowable purpose originally enacted as FA 1996 Sch 9 para 13: ‘The company may not bring into account … so much of any debit … as on a just and reasonable apportionment is attributable to the unallowable purpose’ (s 441(3)).
If the purposes of the company include a tax avoidance purpose ...
