11 August 2021
Kwik-Fit & Others v HMRC; (FTT)
CORPORATION TAX – loan relationships – unallowable purpose test – intra-group reorganisation enabled acceleration of use of non-trading loan relationship deficit – Appellants agreed to increase rate of interest on loans – whether Appellants were party to loan relationships for an unallowable purpose – held yes – consideration of amount of debit attributable to that unallowable purpose on a just and reasonable basis – appeal allowed in part
Kwik-Fit Group Limited, Stapleton’s (Tyre Services) Limited, Kwik-Fit Finance Limited, Kwik-Fit (GB) Limited & Kwik-Fit Euro Limited v The Commissioners for Her Majesty’s Revenue and Customs.
This case is a useful development in the case on the unallowable purpose test.
Elizabeth Wilson QC and Ronan Magee were instructed by HMRC (Respondents).
You can read the judgment here.
This content is provided free of charge for information purposes only. It does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of PCTC or by PCTC as a whole.
