Court of Appeal finds that debit on derecognition of derivatives did not ‘fairly represent’ a loss
Our pick of this week's cases
InUnion 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and conclusion on the ‘fairly represent’ requirement in the derivative contracts rules (which has since been repealed for accounting periods beginning on or after 1 January 2016) and dismissed the taxpayers’ appeals on the additional ground that the fairly represent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...
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Court of Appeal finds that debit on derecognition of derivatives did not ‘fairly represent’ a loss
Our pick of this week's cases
InUnion 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and conclusion on the ‘fairly represent’ requirement in the derivative contracts rules (which has since been repealed for accounting periods beginning on or after 1 January 2016) and dismissed the taxpayers’ appeals on the additional ground that the fairly represent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...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")