The taxpayer owned shares in his own company, and was to sell them in a take-over. The sale was delayed. The Act required the base value to be set at the beginning of the tax year, and the chargeable gain was the increase in price when the sale eventually went through. As quoted stock, they were to be valued at the quoted price unless there were exeptional circumstances.
Held: The impending sale should have been disclosed to the shareholders generally. Had that happened, the price at the start of the tax year would have been greater, and the base price was set accordingly and the chargeable gain reduced accordingly. The inspector’s appeal from the Special Commissioners failed.
Judges:
Pennycuick J
Citations:
[1970] 1 All ER 1239, [1970] Ch 628
Statutes:
Jurisdiction:
England and Wales
Citing:
Appealed to – Hinchcliffe (Inspector of Taxes) v Crabtree CA 1971
The taxpayer’s shareholding was to be sold in a take-over. A sale was substantially agreed, but not completed for several months. The base value of the shares fell to be set by the quoted price at the start of the tax year. The take-over had not . .
Cited by:
Appeal from – Hinchcliffe (Inspector of Taxes) v Crabtree CA 1971
The taxpayer’s shareholding was to be sold in a take-over. A sale was substantially agreed, but not completed for several months. The base value of the shares fell to be set by the quoted price at the start of the tax year. The take-over had not . .
Lists of cited by and citing cases may be incomplete.
Capital Gains Tax
Updated: 21 June 2022; Ref: scu.215880
