The taxpayer disposed of his farmhouse, and sought exemption from Capital Gains Tax under sections 101 and 102 of the 1989 Act. The Revenue said it had not been his only or main residence. Contracts had been exchanged for its purchase in 1983, but the transaction was completed only two years later. In the interim … Continue reading Longson v HM Inspector of Taxes: CA 13 Mar 2001
UTTC CAPITAL GAINS TAX – section 38(1)(b) Taxation of Chargeable Gains Act 1992 – whether expenditure incurred ‘on’ an asset and ‘reflected in the state or nature of the asset at the time of disposal’ – whether expenditure incurred ‘in establishing, preserving or defending title to, or to a right over, the asset Citations: [2015] … Continue reading Revenue and Customs v Blackwell: UTTC 13 Aug 2015
SCIT Capital Gains Tax; disposal of shares; whether sum paid to Appellant’s Church, was part of the consideration for the shares; Taxation of Chargeable Gains Act 1992 sections 1, 15, 16, 17, 18, 37, 38 Citations: [2007] UKSPC SPC00640 Links: Bailii Capital Gains Tax; Updated: 12 July 2022; Ref: scu.262386
FTTTx CAPITAL GAINS TAX – disposal of a residential property after 8 months of occupation – whether the property had been the appellant’s residence – whether his occupation of the property had the necessary degree of permanence, continuity or expectation of continuity – held on the evidence that it did not – sections 222 and … Continue reading Moore v Revenue and Customs: FTTTx 14 Aug 2013
FTTTx CAPITAL GAINS TAX – principal private residence – separation – had appellant ‘resided’ at property – no – appeal dismissed – section 222 Taxation of Chargeable Gains Act 1992 Citations: [2013] UKFTT 131 (TC) Links: Bailii Jurisdiction: England and Wales Capital Gains Tax Updated: 06 February 2022; Ref: scu.472333
FTTTx CAPITAL GAINS TAX – Tax avoidance scheme; trusts; sale of shares; put option; effect of contingencies, whether sale of trust assets to Irish trust under option agreement, subsequent sale for market value and ‘repatriation’ of the trust to Scotland avoids liability to capital gains tax; or whether there is a single composite transaction on … Continue reading Morrison 2002 Maintenance Trust, The Trustees of and Others v Revenue and Customs (Capital Gains Tax/Taxation of Chargeable Gains : Disposal): FTTTx 13 Apr 2016
FTTTx Capital gains tax – taper relief – gain arising on disposal of residential property used as accommodation for workers in restaurant – whether business asset taper relief available – paragraph 5(1A) of Schedule A1, Taxation of Chargeable Gains Act 1992 – whether property used wholly or partly for the purposes of the restaurant trade … Continue reading Shing Cheung Mak v Revenue and Customs: FTTTx 30 Jul 2013
Application of Hastings-Bass Rule F had created two settlements. Distributions were made, but overlooking the effect of section 2(4) of the 2002 Act, creating a large tax liability. P had taken advice on the investment of the proceeds of a damages claim and created a discretionary trust. Unfortunately it was done in such a way … Continue reading Futter and Another v Revenue and Customs; Pitt v Same: SC 9 May 2013
ECJ Judgment – Failure of a Member State to fulfil obligations – Freedom of establishment – Free movement of capital – Articles 49 TFEU and 63 TFEU – Articles 31 and 40 of the EEA Agreement – National tax legislation – Attribution of gains to participators in close companies – Different treatment of resident and … Continue reading Commission v United Kingdom: ECJ 13 Nov 2014
UTTC Taxation of Chargeable Gains Act 1992, sections 44 and 45 – whether a valuable painting displayed in Castle Howard was ‘plant’ within section 44(1)(c) of the 1992 Act – whether the painting satisfied the test as to function – whether the painting satisfied the test as to permanence – whether the painting was not … Continue reading Lord Howard of Henderskelfe (Deceased) v Revenue and Customs: UTTC 11 Mar 2013
UTLC TAX – Capital Gains Tax – freehold office premises – value as at 31 March 1982 – rental values – value relativities between floors – yield – comparables – value determined at pounds 137,500 – Taxation of Chargeable Gains Act 1992 P R Francis FRICS [2013] UKUT 0304 (LC) Bailii Taxation of Chargeable Gains … Continue reading Blum v Revenue and Customs: UTLC 23 Jul 2013
CAPITAL GAINS TAX – section 222 Taxation of Chargeable Gains Act 1992 – principal private residence relief – whether appellant occupied property – whether property main residence of appellant – appeal dismissed . .
UTTC CGT – s.49 TCGA 1992 – contingent liability – capacity – representation made of a disposal – costs as a contingent liability. . .
References: [2015] UKUT 418 (TCC) Links: Bailii UTTC CAPITAL GAINS TAX – section 38(1)(b) Taxation of Chargeable Gains Act 1992 – whether expenditure incurred ‘on’ an asset and ‘reflected in the state or nature of the asset at the time of disposal’ – whether expenditure incurred ‘in establishing, preserving or defending title to, or to … Continue reading Revenue and Customs v Blackwell; UTTC 13 Aug 2015
References: [2013] UKUT 129 (TCC) Links: Bailii UTTC Taxation of Chargeable Gains Act 1992, sections 44 and 45 – whether a valuable painting displayed in Castle Howard was ‘plant’ within section 44(1)(c) of the 1992 Act – whether the painting satisfied the test as to function – whether the painting satisfied the test as to … Continue reading Lord Howard of Henderskelfe (Deceased) v Revenue and Customs; UTTC 11 Mar 2013
References: [2013] UKUT 497 (TCC) Links: Bailii Coram: Lord Glennie UTTC CGT – s.49 TCGA 1992 – contingent liability – capacity – representation made of a disposal – costs as a contingent liability. Statutes: Taxation of Chargeable Gains Act 1992 49
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UTTC CAPITAL GAINS TAX – exchange of shares for debentures – whether TCGA 1992 s 137 applies to each shareholder separately – no – whether Special Commissioner entitled to conclude that the main purpose was tax avoidance – yes – appeal dismissed Judges: Avery Jones CBE Citations: [2010] UKUT 114 (TCC), [2010] STI 2112, [2010] … Continue reading Coll and Coll v HM Revenue and Customs: UTTC 5 Mar 2010
Citations: [2006] EWHC 3350 (Ch) Links: Bailii Statutes: Taxation of Chargeable Gains Act 1992 135 Jurisdiction: England and Wales Capital Gains Tax Updated: 09 July 2022; Ref: scu.247506
A non-resident employee had been given share options exercisable at the price of the shares on the New York Stock Exchange at the date of the grant. The Inland Revenue appealed a decision that the option was to be valued as at the date of grant, rather than at the time it was exercised. Held: … Continue reading Mansworth (Inspector of Taxes) v Jelley: CA 12 Dec 2002
References: [2010] UKUT 114 (TCC), [2010] STI 2112, [2010] BTC 1513, [2010] STC 1849 Links: Bailii Coram: Avery Jones CBE UTTC CAPITAL GAINS TAX – exchange of shares for debentures – whether TCGA 1992 s 137 applies to each shareholder separately – no – whether Special Commissioner entitled to conclude that the main purpose was … Continue reading Coll and Coll v HM Revenue and Customs; UTTC 5 Mar 2010
Citations: [20Q8] EWCA Civ 858, [2009] Bus LR 629, [2008] BTC 443, [2009] 1 WLR 1349, [2008] STC 3116, [2008] STI 1873 Links: Bailii Statutes: Taxation of Chargeable Gains Act 1992 179(2) Jurisdiction: England and Wales Capital Gains Tax Updated: 20 December 2022; Ref: scu.271035
CAPITAL GAINS TAX – entrepreneurs relief – section 169 whether J Taxation of Chargeable Gains Tax Act 1992 – trust business assets – shares – settlement business assets – whether ‘qualifying beneficiary’ must be a qualifying beneficiary throughout a period of one year ending not earlier than three years before the date of disposal – … Continue reading The Quentin Skinner 2005 Settlement L and Others v Revenue and Customs (Income Tax/Corporation Tax : Entrepreneurs Relief): FTTTx 6 Aug 2019
Construction of the provisions relating to entrepreneurs’ relief contained in Chapter 3 of Part V of the Taxation of Chargeable Gains Act 1992, as they applied to certain disposals of trust business assets made by the trustees of three related family settlements. Judges: Lord Justice Lewison Lord Justice Snowden And Sir Launcelot Henderson Citations: [2022] … Continue reading The Quentin Skinner 2015 Settlement L and Others v Revenue and Customs: CA 16 Sep 2022
The taxpayer company entered into an arrangement in which shares were purchased by a company based in Ireland and resold. A claim was made for holdover relief. Held: The scheme failed. The restriction imposed did not infringe the right of establishment under European law since the company was not restricted from setting up business. It … Continue reading Foulser and Another v HM Inspector of Taxes: ChD 20 Dec 2005
CORPORATION TAX – S137 of Taxation of Chargeable Gains Act 1992 – whether exchange of shares part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to corporation tax – appeal dismissed Citations: [2022] UKUT 205 (TCC) Links: Bailii Jurisdiction: England and Wales Corporation … Continue reading Revenue and Customs v Euromoney Institutional Investor Plc: UTTC 29 Jul 2022
The taxpayer appealed a refusal of full taper relief on the sale of a share for one million pounds, declining to allow any relief for the period prior to April 5 1998. Held: There was no basis in the statute for seeking any other interpretation than that indexation allowances were only allowed for gains after … Continue reading O’Sullivan v HM Inspector of Taxes: ChD 6 Oct 2005
FTTTx CAPITAL GAINS TAX – disposal of property used in used car business- entrepreneur’s relief – section 169I Taxation of Chargeable Gains Act 1992- whether cessation of trade – whether disposal within three years of cessation -yes – appeal allowed Citations: [2014] UKFTT 132 (TC) Links: Bailii Jurisdiction: England and Wales Capital Gains Tax Updated: … Continue reading Jeremy Rice v Revenue and Customs: FTTTx 29 Jan 2014
The test of whether land attached to a private dwelling in excess of a half hectare, was required for the reasonable enjoyment of the property was an objective one. The individual circumstances and requirements of the taxpayer should not affect the assessment. In this case, although the residence included stabling, land used for the horses … Continue reading Longson v Baker (Inspector of Taxes): ChD 5 Dec 2000
The taxpayers used schemes to create allowable losses, and now appealed assessment to tax. The schemes involved a series of transactions none of which were a sham, but which had the effect of cancelling each other out. Held: If the true nature of the transactions could be seen by looking at them all together, then … Continue reading W T Ramsay Ltd v Inland Revenue Commissioners: HL 12 Mar 1981
The taxpayers sold their shares in return for loan notes in the form of mixed qualifying (QCB) and non qualifying corporate bonds (Non-QCB) within section 115 of the 1992 Act. Gains on the disposal of QCB would be exempt from CGT. These were then converted to QCBs. The court was asked as to their chargeability … Continue reading Hancock and Another v Revenue and Customs: SC 22 May 2019
interaction of the rules which relate to corporate reorganisations and those which relate to qualifying corporate bonds Judges: Lewison, Kitchen, Floyd LJJ Citations: [2017] EWCA Civ 198, [2017] 1 WLR 4717, [2017] WLR(D) 363, [2017] STC 1496, [2017] STI 1325, [2017] BTC 14 Links: Bailii, WLRD Statutes: Taxation of Chargeable Gains Act 1992 Jurisdiction: England … Continue reading Hancock and Another v Revenue and Customs: CA 25 May 2017
In section 117 the word ‘security’ identified an asset in the nature of an investment. It was used as meaning something distinct from the debt on it referred to in section 117(1)(a), but it was not simply a reference to the document which evidenced the debt. Briggs J [2008] EWHC 99 (Ch), [2008] STC 1865 … Continue reading Harding v HM Revenue and Customs: ChD 30 Jan 2008
The taxpayer had accepted a grant toward the building of a new club house. They sought rollover relief on the proceeds of sale of the former club house. The inspector sought to restrict the claim to exclude the benefit of the grant. Held: The grant was not to be taken into account. Section 50 did … Continue reading Wardhaugh (Inspector of Taxes) v Penrith Rugby Union Football Club: ChD 10 May 2002
Lord Justice Lawrence Collins [2008] EWCA Civ 1423, [2009] STI 256, [2009] 1 EG 76, [2008] NPC 139, [2009] BTC 26, [2009] STC 239 Bailii Taxation of Chargeable Gains Act 1992 England and Wales Capital Gains Tax Updated: 06 December 2021; Ref: scu.278778
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was payable. Held: The appeal failed. The Revenue should calculate the price which … Continue reading Grays Timber Products Ltd v Revenue and Customs: SC 3 Feb 2010
FTTTx Capital Gains Tax – Whether property was only or main residence of Appellant – Whether Appellant had separated from his wife – Section 222 Taxation of Chargeable Gains Act 1992 – Appeal dismissed Brooks TJ [2011] UKFTT 457 (TC) Bailii Taxation of Chargeable Gains Act 1992 222 England and Wales Capital Gains Tax Updated: … Continue reading Benford v Revenue and Customs: FTTTx 8 Jul 2011
Convertible loan notes had been issued as a channel for future gains. Held: The loan notes were not a normal commercial loan as defined in Schedule 18 to the 1988 Act, and therefore did not fall within the section so as to allow qualification for exemption from liability to tax. The conditions relating to ‘normal … Continue reading Weston v Garnett (HM Inspector of Taxes): CA 16 Jun 2005
Lapsed Currency conversion option lost status The taxpayer appealed his assessment to Capital Gains Tax on his redemption of loan notes arising following the sale of his computer company. He said that they were qualifying corporate bonds. The question was whether a security in which a currency conversion option has lapsed, becomes (as the taxpayer … Continue reading Harding v Revenue and Customs: CA 23 Oct 2008
The claimants alleged professional negligence in advice given by the defendant on a share purchase, saying that it should have been structured to reduce Capital Gains Tax. The defendants denied negligence and said the claim was statute barred. Held: The defence in fact was that the claimant had both brought the claim too early because … Continue reading Pegasus Management Holdings Sca and Another v Ernst and Young (A Firm) and Another: ChD 11 Nov 2008
The taxpayers had set up trusts which they said were based in Mauritius allowing them to claim double taxation relief. The Revenue had issued closure notices, confirmed by the SPCT, but overturned by the High Court. The Revenue appealed, saying that the trust was resident in the UK. Held: The appeal suceeded (Patten LJ dissenting … Continue reading Revenue and Customs v Smallwood and Another: CA 8 Jul 2010
A settlor by will was deemed to have had an interest as funds were passed to a Jersey Trust. The section merely made or allowed that a variation of a will would not be a taxable event in UK law. It had no other effects. A deed of family arrangement . .
The taxpayer company purchased properties to be occupied by other companies within the same group. Having granted leases, they assigned the rental income for the first six years to a bank in return for a capital payment. They then sought relief from . .
Transfer of trust assets by trustee of non-resident settlement to trustees of new UK-resident settlement – asset transfer linked with trustee borrowing – capital distributions subsequently made by latter settlement to beneficiaries who are also . .
A settlor by will was deemed to have had an interest as funds were passed to a Jersey Trust. The section merely made or allowed that a variation of a will would not be a taxable event in UK law. It had no other effects. A deed of family arrangement . .
