Legal News

Loans to joint ventures cause company association (Jacobs Construction v HMRC)

Loans to joint ventures cause company association (Jacobs Construction v HMRC)
Published on: 12 August 2016
Published by: LexisPSL
  • Loans to joint ventures cause company association (Jacobs Construction v HMRC)
  • Original news
  • What are the practical implications of this case?
  • What was this case about?
  • Associated companies
  • What did the FTT decide?
  • Associated companies
  • What should tax lawyers take note of?
  • Case details

Article summary

Tax analysis: the First-tier Tax Tribunal (FTT) has found that loans to 50/50 joint venture (JV) companies have tipped the JV member over the 50% threshold for control so that the companies have become associated companies for the purposes of the small profits rate of corporation tax (which applied prior to 1 April 2015). The FTT has also found that information in accounts submitted with the tax return were insufficient to prevent a subsequent discovery assessment. or take a trial to read the full analysis.

Popular documents