BlackRock’s $821 Million Deduction Spurned by UK Court (1)

A UK appeals court rejected BlackRock Inc.'s claim that it was entitled to a tax deduction of 654 million pounds ($821 million) on financing for a key acquisition.

The UK Court of Appeal said in its ruling Thursday it agreed with some of the asset-management firm’s arguments, but the court ultimately ruled in favor of His Majesty’s Revenue & Customs’ position that the deduction should be rejected under the “unallowable purpose” rule — the idea that the loan’s only purpose was to secure a tax advantage.

In a statement, BlackRock said it was “closely evaluating our next steps.” The firm ...