.png)
.png)
What’s the motive? – Part 1
Key points
- Osmond and Allen is a case about the transactions in securities rules.
- This first part of the article deals with the decision in respect of the motive test.
- The main purpose test was designed to prevent commercial transactions being caught by anti-avoidance rules.
- Messrs Allen and Osmond needed to persuade the judges that their main purposes for entering into the transactions in securities were not wholly or mainly about income tax.
- HMRC has almost never challenged the winding up of a company under the transactions in securities rules.
- The tribunal’s view appears to be that if a transaction is being carried out for capital gains tax purposes and it is inevitable that there will be an income tax advantage as defined the transactions in securities rules must apply.
The recent decision in Osmond and Allen (TC9163) has generated a great deal of interest in the...
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 'customer.services@lexisnexis.co.uk' for further assistance.
