Market leading insight for tax experts
View online issue

Bristol & West PLC v HMRC

FA 2002 replaced the tax regime applying to ‘interest rate swaps’ previously contained in FA 1994. The new regime applied to companies for their first accounting period ending after 1 October 2002. In Bristol & West PLC v HMRC (TC02630 – 9 April) a company (BW) had entered into an ‘interest rate swap’ for commercial reasons. In August 2003 when it was subject to the FA 2002 regime it novated the swap to an associated company (BF) which was not yet within that regime for a premium of £91m. In its next return it treated this premium as outside the scope of tax. HMRC issued an amendment charging tax on it and BW appealed. The FTT dismissed the appeal holding that FA 2002 Sch 26 para 28 did not apply. Judge Nowlan held that BF ‘cannot have inherited liabilities under a transaction effected...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.