Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration


02 July 2007
Categories: Tax cases , Capital Gains
Nicholas John Harding (SpC 608)

Qualifying or not?

The case of Harding concerned a scheme designed to hold over a gain on the sale of shares into loan notes from the acquiring company and then to claim that the subsequent redemption of the loan notes was not liable to tax.
The appellant was a director of a software business carried on through a holding company Q and its wholly owned operating company F.
On 13 January 1995 the appellant and the other two directors received five year loan notes in exchange for their shares in Q from C a German company. These could be redeemed early by the holder issuing a redemption notice between 1 and 21 January each year for repayment on 1 July.  Mr Harding and his fellow directors issued redemption notices on the same day as the loan notes were issued. The loan...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

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 '' for further assistance.

back to top icon