Loan to own meaning

D’Angelin v HMRC [2024] UKFTT 462 (TC) The taxpayer was UK-resident but not domiciled and used the remittance basis. In 2016 he brought £1.5m of overseas income to the UK and placed it into a UK company where he was the sole shareholder and director. That company operated providing advice to international clients and family-owned holdings. He claimed business investment relief under section 809VA of the Income Tax Act 2007 (ITA 2007) in relation to the investment, with the result that the £1.5m was treated as not remitted to the UK (and therefore not taxable). During 2017/18 he used the company credit card for private spending, from an iTunes subscription through to the personal use of a jet, and those outgoings were posted to his director’s loan account. The balance on that account peaked at about £71,000. At all times he held sufficient personal funds either to clear the loan account or to have met those expenses personally from his own funds, which were sufficient at all times to...

Barclays Bank plc v HMRC [2024] UKFTT 246 (TC) In late 2008, the Barclays group undertook the following measures to bolster its Tier 1 capital ratios, thereby sidestepping the need for a government rescue: BBPLC issued £3bn of RCIs to two strategic investors as well as other institutional backers; and concurrently, its parent, Barclays plc (Barclays), granted five-year share warrants over its own stock to the strategic investors for a nominal amount. BBPLC received £3m for the RCIs but recorded the arrangements on the footing that £800m of the overall £3bn was, in reality, consideration paid by the investors for the warrants. As a result, its accounts reflected a cash inflow of £2.2bn attributed to the RCIs and £800,000 recognised as a capital contribution from Barclays. The disparity between £2.2bn...

In a claim filed in the High Court on 5 April 2024, Super Fast Trading Ltd — acting for the insolvent property firm Grindale Ltd — contends that the Governor and Company of the Bank of Ireland (BOI) and its UK arm provided fraudulent assurances about the value of properties Grindale acquired in greater Manchester, North England. The pleading says BOI real estate manager Gavin Kennedy told Grindale director Aryeh Ehrentreu during a lunch meeting in November 2008 that BOI would finance the purchases and that the assets carried a ‘recent valuation’ of £7.5m. Kennedy purportedly advised there was no requirement for Grindale to commission its own valuation or assessment of the Manchester portfolio. Yet, the figures were not current and, in fact, the true values were substantially below those stated, the claim alleges...

This Practice Note sets out advice for law firms on responding to client account fraud and outlines the applicable legal and regulatory duties. Client funds are inviolable and their careful stewardship is essential and paramount. What is client account fraud? A firm suffers client account fraud where money is unlawfully taken from its client account. Immediate steps to take Act swiftly to limit harm in the immediate aftermath of client account fraud. Do everything possible to prevent further loss and disruption promptly. Form a fraud response team and appoint someone to lead the incident without delay; suitable choices include: the compliance officer for finance and administration (COFA) the finance director the compliance officer for legal practice (COLP) the nominated officer the senior partner another appropriately senior person within the firm The SRA warning notice, Money missing from client account, states that if you discover that funds are missing, you must take steps to ensure...

Subscription and shareholders’ agreement This Practice Note offers guidance for drafters preparing and/or reviewing a subscription and shareholders’ agreement relating to the allotment of shares (and, potentially, loan notes) in a private limited company incorporated in England and Wales by a private equity (or venture capital) fund investor (the investor) within a venture capital (VC) deal, where the structure provides for split exchange and completion, ie conditions must be met before completion of the subscription and shareholders’ agreement. The investment contemplated is into an existing company (the Company), with the current shareholders (typically the business’s founders) keeping the shares they have already been issued in the Company. Set out below are matters to weigh up when drafting and/or reviewing the principal provisions of a subscription and shareholders’ agreement (SSA). Parties The investee company Although the principal parties to the SSA will be the relevant investor and the Company’s founders, the Company will ordinarily be included as a party too, ie the vehicle in which the investor...

This Practice Note offers high-level guidance on debt buy-backs within loan documentation. It first outlines what constitutes a debt buy-back, then considers the issues that may emerge, and sets out how the Loan Market Association (LMA) addresses buy-backs in its standard form documents. For fuller analysis, including structuring points, see Article: Structuring loan buybacks—(2021) 5 JIBFL 337. Buy-backs can relate to loans or bonds; however, this Practice Note addresses loan buy-backs only. For material on bond buy-backs, see Article: and the weakening of bondholder protection (2020) 5 JIBFL 310. What is a debt buy-back? In a lending context, a debt buy-back typically means the acquisition of existing debt in the secondary market by a sponsor (or a sponsor affiliate) or by a company within the borrower group in a sponsor-controlled leveraged credit...

It is not clear whether the donor holds a lasting power of attorney (LPA) for property and affairs (P&A), for health and welfare (H&W), or both. As attorneys have determined that the donor’s home should be sold (necessitating a P&A LPA) and that the donor should move into a care home (necessitating a H&W LPA), we proceed on the basis that both LPAs exist and have been registered. We also proceed on the basis that there is more than one attorney. Where authority to act is several rather than joint, the lending attorney may opt out of any decision in which they have a conflict of interests. It is further assumed that: the donor had adequate capacity to enter into the loan the LPAs do not include specific instructions or preferences about when the donor’s home is to be sold and/or when they are to enter a care home (if present, the attorneys should take them into account) the attorney who advanced the loan wishes...