Weston v HM Inspector of Taxes

Weston v HM Inspector of Taxes

The loan notes were not qualifying corporate bonds because the underlying loan carried a right, albeit exercisable through a series of steps, to conversion into shares, which disqualified them from being normal commercial loans under the statutory definition.

Parties
Appellant: Michael Charles Weston; Respondent: Michael Garnett (HMIT)
Jurisdiction
England and Wales
Judgment Date
16 June 2005
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Capital Gains Tax, Qualifying Corporate Bonds, Tax Avoidance Schemes
Tax Law Capital Gains Tax Qualifying Corporate Bonds Tax Avoidance Schemes

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Parties

Michael Charles Weston

Appellant

Michael Garnett (HMIT)

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether certain loan notes issued in a tax avoidance scheme were qualifying corporate bonds for the purposes of section 117 of the Taxation of Chargeable Gains Act 1992

Ratio Decidendi

The loan notes were not qualifying corporate bonds because the underlying loan carried a right, albeit exercisable through a series of steps, to conversion into shares, which disqualified them from being normal commercial loans under the statutory definition.

Court Disposition

Appeal dismissed