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First-tier Tribunal (Tax)
You are here: BAILII >> Databases >> First-tier Tribunal (Tax) >> HEXAGON PROPERTIES LIMITED v Revenue & Customs (Corporation tax - loan relationships - Appellant sued bank for damages for mis-sold interest rate hedging product) [2022] UKFTT 137 (TC) (14 April 2022)
URL: http://www.bailii.org/uk/cases/UKFTT/TC/2022/TC08468.html
Cite as: [2022] SFTD 901, [2022] UKFTT 137 (TC), [2022] STI 739
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| Decision Number: | TC 08468 |
| Appellant: | HEXAGON PROPERTIES LIMITED |
| Respondent: | Her Majesty's Revenue & Customs |
|
Chairmen / Special Commissioners: |
Kevin POOLE |
| Date Of Decision: | 14/04/2022 |
| Main Category: | PROCEDURE |
| Main Subcategory: | Other |
| Notes: | Corporation tax - loan relationships - Appellant sued bank for damages for mis-sold interest rate hedging product - litigation settled on basis that £3.5 million of existing debt to the bank was "released and discharged" by way of settlement of the damages claim - whether this amounted to a "related transaction" - yes - whether the £3.5 million potentially represented a "profit" for loan relationship purposes - yes - whether it arose to the Appellant from its loan relationships or related transactions - held no, it arose from the settlement of the underlying damages claim - therefore taxable under general principles rather than loan relationship regime - appeal allowed |