Generate a structured brief — facts, issues, held, reasoning, and significance — for this case in seconds. Or browse the verbatim judgment via the source links below.
Corporation Tax� -� Joint referral of four disputed issues in relation to treatment of derivatives and to capital gains treatment of the sale of a company� -� scheme for the avoidance of income recognition on a re-couponing of an "in the money" fixed/floating swap� -� paras 15 and 28 of Schedule 26 to FA 2002� -� capital gains value shifting -� Section 30 TCGAct 1992-� one issue determined in favour of the taxpayer company and three issues determined in favour of HMRC
1.���� This case was not strictly an appeal but a joint reference, made under paragraph 31A of Schedule 18 to FA 1998, by HBOS Treasury Services Limited ("Treasury Services") and HMRC for me to determine four disputed questions that had arisen in relation to the consideration of Treasury Services' return for its accounting period ended 31 st December 2003.���
2.���� All four issues arose in connection with a scheme implemented by Treasury Services, designed to monetise and re-coupon some highly valuable fixed/floating interest rate swap contracts with Banque AIG ("AIG"), and to achieve that basic aim in a manner designed to avoid the normal incidence of tax on such a transaction.
8.���� HBOS's dominant motive in wishing to effect any sort of re-couponing transaction was the desire to reduce its credit exposure to AIG.� It was however reluctant to recognise a �2.2 million loss, and so was very attracted by a proposal put to it by Lehman Brothers, and later by Swiss Re, which it was suggested would enable it to re-coupon the swap without recognising a loss at all, since the proposal would eliminate the liability to Corporation Tax on the large payment received on the re-couponing transaction.
16.���� The facts and the evidence given to me took three forms.� I was given an agreed Statement of Facts; evidence was given on behalf of Treasury Services by Mr. Martin Cooper who had been head of trading in the Treasury Division of the HBOS banking Group, and who had been the lead negotiator in relation to all of the negotiations with AIG, Lehman Brothers and Swiss Re, and, finally, written expert evidence was given to me in relation to accounting treatment by Guy Bainbridge, ACA, a partner in KPMG LLP.
Auto-extracted from BAILII. Full structured brief in progress — the source links below give you the verbatim judgment in the meantime.
Multiple official and mirror sources — pick whichever loads cleanly on your network.
Common Room
0 comments · About the Common Room →
No comments yet — start the discussion.
Voted-best comments help future students and feed Caselaw's AI study tools.