TRANSACTIONS IN SECURITIES – company with distributable reserves acquiring company with negative reserves having loan stock acquired by the shareholder of the parent company – loans by the parent company to the subsidiary which repaid the loan stock – whether caught by Circumstance D – yes; hive-down of trade of parent to subsidiary – whether repayment of loan stock out of subsequent profits of the subsidiary caught – no; whether the reference in Circumstance C(2) to assets representing a return of capital which under the law of the country of incorporation is available for distribution limited to foreign-incorporated companies – no
Citations:
[2010] UKFTT 333 (TC), [2010] SFTD 1231, [2010] STI 2644
Links:
Jurisdiction:
England and Wales
Corporation Tax
Updated: 16 October 2022; Ref: scu.422296