M Bamberg v HMRC illustrates some interesting points regarding the transactions in securities legislation. The Tribunal judge decided not to interpret the provisions widely, and held HMRC to
be wrong in its long-held interpretation of the ‘foreign law clause’. The judge also decided that the transfer of a trade to a company with negative reserves could not be counteracted. It also seems likely that the results would have been the same under the new rules applicable to income tax.
