The taxpayer made arrangement for the sale of securities in the form of loan notes with accrued income. It appealed a decision denying to the arrangement treatment of the full sum as capital.
Held: The appeal failed. The agreements provided for irregular repayments, they did so with an apparent standard interest rate. The agreements fell to be taxed under the regime established rather by section 719(9), the court considering that they failed to meet fully the condition that they carry interest at a fixed rate. (Sir Peter Gibson dissenting)
Judges:
Lord Justice Peter Gibson Lord Justice Tuckey
Citations:
[2006] EWCA Civ 657, Times 19-Jul-2006
Links:
Statutes:
Income and Corporation Taxes Act 1988, Taxes Management Act 1970 41A
Jurisdiction:
England and Wales
Citing:
Appeal from – Cadbury Schweppes Plc and Another v Williams (HM Inspector of Taxes) ChD 21-Jul-2005
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Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 06 July 2022; Ref: scu.242350