The taxpayers each paid a sum to a stakeholder for an option to purchase land. The sum was repayable if, restrictive covenants having been released, they decided not to exercise the option. On repayment they were taxed on the sum repaid. They claimed to set off the sums paid out for the release of the restrictive covenants, but this was not allowed, since they had been paid to a third party, and had not been incurred wholly exclusively and necessarily for the gain received.
Citations:
Gazette 08-Jun-2000, [2000] UKHL 30, [2000] 3 All ER 218, [2000] 1 WLR 1107, [2000] UKHL TC – 72 – 561
Links:
House of Lords, Bailii, Bailii
Jurisdiction:
England and Wales
Capital Gains Tax
Updated: 31 May 2022; Ref: scu.159064
