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Decision Number: |
TC 03026 |
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Appellant:
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Versteegh Ltd
Nestron Ltd
Spritebeam Ltd
Prowting Ltd |
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Respondent:
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The Commissioners for Her Majesty's Revenue & Customs |
Chairmen / Special
Commissioners: |
Roger BERNER
Guy BRANNAN
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Date Of Decision:
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06/11/2013 |
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Main Category:
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INCOME TAX/CORPORATION TAX |
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Main Subcategory:
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Other |
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Notes:
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CORPORATION TAX – tax avoidance scheme designed to achieve loan
relationship debit in borrowing company in a group without a
corresponding tax charge in any other group company – loan structured to
provide a return in the form of preference shares issued by the borrower, not
to the lender but to another group company (the share recipient)
Lead case issues: (1) was the lender taxable under FA 1996 (loan
relationships)- application of FRS 5 to the accounts of the lender – was the
lender taxable under s 786 ICTA – effect of s 80(5) FA 1996; (2) was the
share recipient taxable on its receipt of the preference shares under Case VI
of Schedule D; and (3) on the limited basis of the question put to the
tribunal, did the unallowable purposes rule in FA 1996, Sch 9, para 13
result in the borrower’s debit in respect of the issue of the preference shares
under the loan agreement not being taken into account under FA 1996 |
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Decision(s) to Download:
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TC03026.pdf 
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