CFM38110 - Loan relationships: tax avoidance: unallowable purpose: overview

CTA09/S441-442

Overview

The 바카라 사이트˜unallowable purpose rule바카라 사이트™ at s441-442 is principally an anti-avoidance provision. The Financial Products Team (Business, Assets and International) is responsible for its overall policy and the Counter-Avoidance Technical Team for its operation.

The unallowable purpose rule is engaged in relation to a loan relationship where the loan relationship or related transaction has an 바카라 사이트˜unallowable purpose바카라 사이트™ at times in an accounting period. It provides that debits (or exchange gains credits) are not to be taken into account to the extent that, on a just and reasonable apportionment, the debits (or exchange gains credits) are attributable to the unallowable purpose.

Many of the core elements of the rule are a question of fact, and so will depend on the particular facts and circumstances of the arrangements being considered.

The rest of this guidance is structured as follows:

  • CFM38115 sets out a technical summary of the rule, intended to be sufficient that it is possible to read this and then go straight to the practical guidance in many cases

  • CFM38120 to CFM38167 set out the technical position on a number of points in more detail

  • CFM38170 to CFM38200 contain practical guidance, including guidance at CFM38190 on situations where the unallowable purpose rule would or would not normally apply