SCIT CAPITAL GAINS TAX – tax avoidance scheme – whether subscription for shares followed by the return of the subscription money by way of dividend (by an unlimited company), followed by disposal of the shares for a nominal amount five months after the subscription was a self-cancelling composite transaction – yes – whether HMRC can tax the settlor on the trustees’ gain under s 77 TCGA 1992 when the did not open an enquiry into the trustees’ return which claimed an offsetting loss – yes – whether (assuming that the dividend had not been ignored as part of the composite transaction) the settlor was taxable on the dividend under s 660A Taxes Act 1988 – no – or whether the trustees were taxable on it under s 686 – no.
Citations:
[2008] UKSPC SPC00718
Links:
Statutes:
Income and Corporation Taxes Act 1988 660A
Jurisdiction:
England and Wales
Capital Gains Tax
Updated: 10 July 2022; Ref: scu.278760