Convertible loan notes had been issued as a channel for future gains.
Held: The loan notes were not a normal commercial loan as defined in Schedule 18 to the 1988 Act, and therefore did not fall within the section so as to allow qualification for exemption from liability to tax. The conditions relating to ‘normal commercial loan’ were designed to ensure that the exemption only extended to bonds that were genuinely traded; and more generally to ensure that the exemption could not be used as a vehicle for avoidance:
Pill, Chadwick, Buxton LJJ
[2005] EWCA Civ 742, Times 29-Jun-2005, [2005] STC 1134, (2005) 77 TC 650, [2005] BTC 342
Bailii
Taxation of Chargeable Gains Tax Act 1992 115 117, Finance Act 1976 Sch 14, Income and Corporation Taxes Act 1988 Sch 18 p 1(5)
England and Wales
Citing:
Appeal from – Weston v Garnett (Inspector of Taxes) ChD 25-Jun-2004
The taxpayer entered into a scheme for the issue and disposal of corporate loans. He appealed a finding that the loans were caught by section 115 which disallowed exemption because they did not represent a normal commercial loan.
Held: It was . .
Cited by:
Cited – Harding v Revenue and Customs CA 23-Oct-2008
Lapsed Currency conversion option lost status
The taxpayer appealed his assessment to Capital Gains Tax on his redemption of loan notes arising following the sale of his computer company. He said that they were qualifying corporate bonds. The question was whether a security in which a currency . .
Lists of cited by and citing cases may be incomplete.
Capital Gains Tax
Updated: 10 November 2021; Ref: scu.226734
