FTTTx CORPORATION TAX – purported assignments of unregistered trade marks in gross (newspaper mastheads) by subsidiaries to their parent company – whether valid under common law – held no – alternatively on the basis that they were valid whether certain of them were unlawful distributions pursuant to sections 263 and 270(2) Companies Act 1985 – held no – whether purported licences-back of the trade marks by the parent company to the subsidiaries were for a licence fee in excess of market value – found yes – and whether the licence fees were unlawful distributions of capital by the subsidiaries – Progress Property Co Ltd v Moore [2011] 1 WLR 1 considered – held no – whether the licence fees were capital receipts or income receipts in the hands of the parent company – held capital – whether Sch. 29 FA 2002 applies to the licences – held no, because there was no post-commencement expenditure on their creation – whether the purported assignments and licences-back were tax avoidance arrangements within para. 111, Sch. 29 FA 2002 – held yes – whether the one of the main purposes for which the subsidiaries and parent entered into loan relationships to facilitate the transactions was a tax avoidance purpose within para. 13, Sch. 9 FA 1996 – held yes – whether any debit under Ch. II, Pt. IV, FA 1996 was attributable to the tax avoidance purpose – held no – appeals allowed in part
Judges:
John Walters QC HHJ
Citations:
[2012] UKFTT 696 (TC)
Links:
Statutes:
Jurisdiction:
England and Wales
Corporation Tax
Updated: 09 November 2022; Ref: scu.466252