19 June 2013

FTT Decision: Vocalspruce Ltd v HMRC

“Corporation Tax- whether the profit on loan notes is subject to the charge to corporation tax under the loan relationship rules. Construction of s. 84(2)(a) of and paragraph 12 of Schedule 9 to the Finance Act 1996. Profits realised on loan notes which the company had agreed to appropriate to share premium account on the issue of shares for the loan notes were not amounts required to be transferred to its share premium account within the meaning of s. 84(2)(a); the profit appropriated to share premium account was not excluded from the scope of s. 84(2)(a) by paragraph 12 of Schedule 9. Appeal and Cross-appeal dismissed.”

Julian Ghosh QC, Elizabeth Wilson & Barbara Belgrano acted for HMRC.

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