A company capitalised a sum standing to the credit of its profit and loss account and applied it in issuing redeemable debentures to its members in proportion to the amounts paid up on their shares. The company subsequently redeemed the debentures at par. The difficulty arose because the debentures were issued in 1953, long before the enactment of the Finance Act 1960, while notice of redemption was not given until 1961.
Held: The Finance Act was not retrospective. The question was whether the redemption and cancellation of the debentures by themselves constituted transactions in securities. The House unanimously held that they did.
Citations:
[1966] AC 141, 43 Tax Cas 396, [1966] UKHL TC – 43 – 396, [1966] 1 All ER 399, [1966] 2 WLR 486
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Cited – Inland Revenue Commissioners v Laird Group plc CA 30-Apr-2002
The taxpayer had sources of foreign income. Arrangements were made to take the benefit through the payment of interim dividends, which it intended to use to set off against liability for advance corporation tax. The Commissioner contended that these . .
Cited – Her Majesty’s Commissioners of Inland Revenue v Laird Group plc HL 16-Oct-2003
Was the payment of a dividend in respect of shares ‘a transaction in securities’ or ‘a transaction relating to securities’ within the meaning of section 703.
Held: ‘As a matter of ordinary language, the creation, issue, sale, purchase, . .
Lists of cited by and citing cases may be incomplete.
Taxes Management
Updated: 07 June 2022; Ref: scu.182901