PARTIAL WIN IN LEAD TAX CASE FOR GREENE KING GROUP

摘要

The Court of Appeal has partially upheld Greene King pic and Greene King Acquisitions Ltd's appeal, finding that a transferred right to receive interest was a loan relationship in Greene King pic & Anor v Revenue And Customs [2016] EWCA Civ 782. The Greene King group of companies (GK group) had entered into a marketed scheme entitled Project Sussex, devised and marketed by EY with the intention of avoiding corporation tax on interest arising on an intra-group loan. Greene King pic (PLC), the parent company of the group, had advanced funds to Greene King Brewing and Retailing Ltd (GKBR) and, on the same day, GKBR had issued unsecured loan stock to PLC as security for the loan.