Market leading insight for tax experts
View online issue

Court of Appeal on Lloyds TSB and ‘main object’ tests

Speed read

In the recent Lloyds TSB decision, the Court of Appeal overturned a tribunal decision allowing capital allowances in a leasing structure. It held that the tribunal’s approach to a ‘main object’ test appeared possibly flawed, and required the tribunal judges to reconsider their decision on the point. The leading judgment criticises the use of such tests in tax legislation. This article considers the case so far, and the problems with HMRC’s new-found enthusiasm for applying these tests. Discussion of this topic increasingly seems to involve loose references to rules of thumb. Taxpayers wishing to resist an HMRC challenge can do no better than to stick rigorously to the words of the legislation and published HMRC policy.

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.