22 décembre 2022
Article | UK | Tax | Kwik-Fit Group v HMRC | December 2022
In Kwik-Fit Group Ltd and others v HMRC  UKUT 314 (TCC) (November 2022), the Upper Tribunal (UT) upheld the decision of the First-tier Tribunal (FTT) that: (1) an intragroup debt restructuring, which would have had the effect of accelerating the use of a non-trading loan relationship deficit, had an ‘unallowable purpose’ (within the meaning in sections 441–442 of the Corporation Tax Act 2009 (CTA 2009)); and (2) the original commercial purpose under which intra-group debtors had borrowed survived the assignment of loans as part of the restructuring so that, on the basis of a just and reasonable apportionment, debits calculated by reference to the pre-assignment rate of interest were allowable in respect of the post-assignment period.
In this article Senior Counsel, Gerald Montagu discusses the practical implications of this case.
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