Sarah Squires has contributed to the British Tax Review.
HMRC v Euromoney Institutional Investor Plc: the main purpose test for share for share exchanges
Restructurings and takeovers often involve share for share exchanges, with HMRC general asked to confirm that the exchange is for bona fide commercial purposes (and not for a main tax avoidance purpose) under s138 Taxation of Chargeable Gains Act 1992. In Euromoney’s case, although HMRC said “no”, refusing clearance, both the First and Upper Tier Tribunal decided that the planning done was not enough to qualify as a “main purpose”. This case note discusses the decision of the Upper Tribunal.
Please see attached the full Article HERE
‘This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London, E14 5AQ, in the British Tax Review as “HMRC v Euromoney Institutional Investor Plc: an example of tax planning as ‘icing on the cake'”, 2022 BTR 5 (p489) and is reproduced by agreement with the publishers’
