FA 2013 includes two sets of provisions to prevent corporate groups from accessing ‘unrealised’ losses from unrelated parties. The first extends the existing capital allowances buying rules. The main change is that ‘excess’ allowances may now be restricted in certain cases where there is no tax avoidance motive. The second set introduces two new TAARs: a ‘deduction transfer TAAR’ and a ‘profit transfer TAAR’, both aimed at preventing future tax deductions being offset against the profits of an unconnected group. Even though these TAARs include a tax motive condition, it is likely that the rules will affect some commercially-driven transactions
