Commentary

D6.611 Capital treatment—for the benefit of the trade

Corporate tax
Corporate tax | Commentary

D6.611 Capital treatment—for the benefit of the trade

Corporate tax | Commentary

D6.611 Capital treatment—for the benefit of the trade

The criteria determining whether a purchase is made for the purpose of benefiting a trade is not clear although the High Court has held that whether or not a payment is made for the benefit of a company's trade is a question of fact1. Additionally, the legislation is expressly intended to apply to the shareholder who wishes to quit the business, the dissentient shareholder in a boardroom dispute, the retired or deceased shareholder and the outside shareholder who made a short-term equity investment and is now withdrawing his investment2.

HMRC have emphasised the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial