Standfast Corporate Underwriters Ltd v Revenue and Customs: FTTTx 12 Feb 2014

FTTTx Corporation tax – corporate underwriter at Lloyd’s – application of anti-loss buying restriction in s227A Finance Act 1994 – taxpayer owned by consortium during period of ‘group-relief continuity condition’ in s227A(5), subsequently acquired as wholly-owned subsidiary of one of the consortium members – then seeking to surrender in later period, by way of group claim, underwriting losses which had been effectively deferred to that period by successive elections under s107(4) Finance Act 2000 – whether the losses sought to be surrendered (or some part of them) could be regarded as ‘losses of the last active underwriting year’ – held yes, some part of them – whether existence of consortium relief relationship between companies during the relevant period satisfied the ‘group-relief continuity condition’ in s227A(5), in spite of later surrender being purportedly made pursuant to a group (and not consortium) claim – held yes – whether commencement provision, properly interpreted, applied s227A to the present facts – held no – appeal allowed

Poole TJ
[2014] UKFTT 182 (TC)
Bailii
Finance Act 1994 227A
England and Wales

Corporation Tax

Updated: 10 November 2021; Ref: scu.521804