Farnborough – disqualifying arrangements for loss surrenders

In Farnborough Airport Properties Ltd and others v HMRC, the Upper Tribunal upheld the decision of the First-tier Tribunal that the appointment of receivers in respect of a company meant that the shareholders of the relevant company ceased to control it. As a result, the company could no longer surrender losses by way of group relief because arrangements were in place whereby the relevant group relationship could come to an end. Some of the views expressed by the UT in arriving at this decision are noteworthy in terms of their potential impact on the interpretation of the safe harbour rules in CTA 2010 s155A/155B and s174A/174B.

This article was first published in the 16 February 2018 edition of Tax Journal