Taxation of profits made on sale or transfer of derivatives under Finance
Act 2002. Whether transfer disregarded between subsidiaries where one of
the companies is not subject to the regime under the 2002 Act. Closure
Notice – whether effective when sent by mistake known to the tax payer
Held: The transfer was not to be disregarded for the purposes of the 2002
Act but the Closure Notice was effective and prevented HMRC from seeking
to claim tax in that tax year arising out of the transfer between the two
companies. Appeal allowed.