.png)
.png)
03 May 2019
R Dennis (TC6868)
The taxpayer entered into a joint venture with TAG to develop and manufacture electronic audio and audio-visual equipment. They both made investments into the joint venture vehicle by way of loans and shares. After about seven years the company was wound up. The taxpayer made a rebalancing payment of £3m to TAG under the shareholders’ agreement (clause 10.3).
In his 2007-08 self-assessment return he claimed a loss of £3m which he considered arose under TCGA 1992
s 253(4) as a result of the payment he had made to TAG. In his 2008-09 return he claimed to offset that loss against other gains that he had made in that year. HMRC refused the claims. The taxpayer appealed.
The issue for the First-tier Tribunal was whether the rebalancing payment amounted to a guarantee of a loan or whether it was an indemnity. The judge said clause 10.3 could apply only after the company had...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
