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The FTT has released its decision rejecting Lloyds Asset Leasing Limited’s (LAL) appeal by which it claimed to be entitled to claim cross border group relief (CBGR) in the UK for losses suffered in Ireland. LAL was one of 100 subsidiaries of the Lloyd’s Banking Group (LBG) to whom Bank of Scotland Ireland (BOSI) sought to surrender losses it incurred in relation to its banking business in Ireland following the financial crisis of 2008.
HMRC disallowed LAL’s claim for CBGR on the basis that the qualifying loss conditions in s119 CTA 2010 were not satisfied and, in the alternative, s127 CTA should apply as the “main purpose or one of the main purposes” of the arrangements by which BOSI’s losses were sought to be surrendered was to secure that the amount in question may be surrendered for the purposes of group relief.
The FTT found that LBG satisfied the qualifying loss condition in s119 and the precedence condition in s121 but that s127 applied to exclude group relief as the main purpose or one of the main purposes of the arrangements put in place by LBG to exit Ireland was to secure CBGR for BOSI’s accumulated losses.
The Decision can be accessed here.
Brendan McGurk KC acted for HMRC along with Akash Nawbatt KC and Kate Blamer of Devereux Chambers.