Mark Middleditch (Allen & Overy) provides this month’s update, including: the limits of the purposive approach in tax avoidance cases; accelerated payments and DOTAS; draft changes on loan relationships and derivative contracts; notice clauses in tax indemnities; and the new HMRC Stamp Taxes on Shares Manual
Two recent cases highlight the extent to which the courts feel able to counter tax avoidance with purposive construction.
In Anthony Hancock and Tracy Lee Hancock v HMRC [2014] UKFTT 695 (TC) taxpayers sold shares for loan notes.
The loan notes were redeemable in a foreign currency so were not qualifying corporate bonds (QCBs) for CGT purposes (TCGA 1992 s 117). A smaller tranche of loan notes was issued as deferred consideration on the same terms ...
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