Union Castle v HMRC and Ladbrokes v HMRC

Our pick of this week's cases

In Union Castle v HMRC and Ladbrokes v HMRC  [2020] EWCA Civ 547 (22 April 2020) the Court of Appeal dismissed the taxpayers’ appeals concerning the application of the derivative contracts rules to a scheme involving the issue of bonus shares which carried a right to substantially all of the returns on certain derivatives. In doing so however the court disagreed with the Upper Tribunal’s (UT’s) interpretation and conclusion on the ‘fairly represent’ requirement in the derivative contracts rules (which has since been repealed for accounting periods beginning on or after 1 January 2016) and dismissed the taxpayers’ appeals on the additional ground that the fairly represent requirement was not met.

Union Castle (UC) entered into a scheme to reduce the tax impact of transferring derivatives to its parent. UC retained its derivatives but issued bonus shares which effectively transferred the...

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Our pick of this week's cases

Union Castle (UC) entered into a scheme to reduce the tax impact of transferring derivatives to its parent. UC retained its derivatives but issued bonus shares which effectively transferred the...

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Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

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