CTA10/S1005 imposes a once and for all test at the time of the issue of the security to determine whether the return to the lender represents a reasonable commercial return.
•Looks at the facts at the time of the issue of the security. There is no scope for considering later unforeseen events. If market interest rates at the time of issue were high and the security was issued at rates which were commercially reasonable at that time, it is not appropriate to reconsider the application of CTA10/S1005 simply because market rates subsequently became lower.
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