First-tier Tribunal decision in Syngenta and unallowable purpose

Syngenta Holdings Limited (TC9346) is the first published decision on CTA 2009 s 441 and s 442 (the unallowable purpose rule) since the Court of Appeal handed down its judgment in BlackRock Holdco 5 LLC v HMRC [2024] STC 740 Kwik-Fit Group Ltd and others v HMRC [2024] STC 897 and JTI Acquisition Company (2011) Ltd v HMRC [2024] STC 1179.

What is the unallowable purpose rule?

It is an anti-avoidance rule found in the corporation tax code. It applies in any accounting period in which a company has an unallowable purpose for being party to a loan relationship ie a borrowing. Where there is such a purpose the company may not bring into account for that period so much of any debit ie interest in respect of that relationship as on a just and reasonable apportionment is attributable to the unallowable purpose...