The taxpayer sought capital gains tax relief of a loan to a business. Held: To succeed in his claim the taxpayer had to establish that the indebtedness created was to be used entirely to serve the borrower’s business. Judges: The Honourable Mr Justice Patten Citations: [2004] EWHC 1596 (Ch), Times 22-Jul-2004 Links: Bailii Statutes: Taxation … Continue reading David Robson v Eric Mitchell (HM Inspector of Taxes): ChD 8 Jul 2004

The company had taken out a loan to finance works on the farm. The loan was guaranted by the taxpayer. Years later when the farm was sold, part of the money was used to repay the loan, and the taxpayer sought to set it off against his liability for Capital Gains Tax. Held: the taxpayer … Continue reading Robson v Mitchell (HM Inspector of Taxes): CA 18 May 2005

FTTTx INCOME TAX – loss relief for loans to traders – s253 Taxation of Chargeable Gains Act 1992 (‘TCGA 1992’) – whether payments made by appellant in respect of interest on bank loans to property trading company . .

The taxpayer use a bed and breakfast arrangement with a trust based in Mauritius, taking advantage of the double taxation agreement with that country. The shares were transferred into a discretionary trust. When the shares increased in value they were sold, and on that day the trustees retired, to be replaced by the trust company … Continue reading Davies (Inspector of Taxes) v Hicks: ChD 12 May 2005