Kellogg Brown & Root Holdings (UK) Ltd v Revenue and Customs Comrs

Subject Matter

REVENUE — Capital Gains Tax — Disposal of assets — Taxpayer company transferring shares in subsidiaries to United Kingdom company owned by United States company owned by taxpayer company's United States parent company — Transaction effected after shares of subsidiaries distributed to parent company's shareholders — Whether transaction between connected persons so that loss on sale of shares not available to set against taxpayer company's gains generally — Income and Corporation Taxes Act 1988, s 416(2)(3)(6) — Taxation of Chargeable Gains Act 1992, ss 18, 28, 286(5)(b)

[2009] STC 1359

REVENUE — Capital Gains Tax — Group of persons having control of company — Taxpayer claiming to deduct capital loss against chargeable gains — Claim disallowed as loss between “connected persons” only deductible from chargeable gains arising on other disposals between same connected persons — Whether two companies “connected” because of link between their ultimate holding companies — Whether “group” to be given ordinary meaning — Whether requiring common purpose as well as common relation — Income and Corporation Taxes Act 1988, s 416(2) — Taxation of Chargeable Gains Act 1992, ss 18, 28, 286(5)(b)

[2010] Bus LR 957

Appellate History