The Upper Tribunal has handed down its decision in Swiss Centre Limited v. HMRC, a case concerning the loan relationship rules. SCL made a £34 million payment to the Republic of Ireland’s “National Asset Management Agency” out of the proceeds of the sale of the “Swiss Centre” in London’s Leicester Square. The payment was made on account of amounts owed by other companies in the same or related ownership, but which lacked the resources to pay their debts following the 2008 financial crisis. It argued that the amount should be deductible under the loan relationship rules. In a decision released in 2023 the First-tier Tribunal dismissed the appeal. SCL then appealed to the UT, making various criticisms of (i) the FTT’s approach to the evidence; and (ii) its understanding of the loan relationship rules. By its decision, the UT dismissed SCL’s appeal on all grounds.
Edward Waldegrave appeared for HMRC, leading Calypso Blaj.
A copy of the UT’s decision can be found here.
