16 December 2010
Grogan v Revenue and Customs Commissioners [2010] UKUT 416 (TCC), [2010] All ER (D) 96 (Dec)
A tax advantage could be obtained “in consequence of” a transaction in securities notwithstanding (a) that another operation, which was not a transaction in securities, was a necessary ingredient and (b) that such other operation was not one which took place “in consequence of” the transaction in securities.
There was no reason in principle why the other operation had to take place after the transaction in securities itself. It was enough if the tax advantage was obtained as the result of an overall series of transactions which were linked together to form a scheme and where the relevant transaction in securities was part of that scheme.
