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 been announced, and the taxpayer argued that the quoted price of the shares did not reflect the true value. The Inland Revenue appealed a finding that the impending take-over constituted an exceptional circumstance so that the quoted price could be adjusted upward reducing the chargeable gain.
Held: The appeal succeeded. The fact that the price set by the stock exchange was founded upon a mistake was not an exceptional circumstance within the Act so as to allow any other price to be used.
Citations:
[1971] 2 All ER 104
Statutes:
Jurisdiction:
England and Wales
Citing:
Appeal from – Crabtree v Hinchcliffe (Inspector of Taxes) ChD 5-Dec-1969
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 . .
Cited by:
Appealed to – Crabtree v Hinchcliffe (Inspector of Taxes) ChD 5-Dec-1969
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 . .
Appeal from – Crabtree v Hinchcliffe (Inspector of Taxes) HL 27-Oct-1971
The taxpayer’s shareholding in his quoted company was to be sold. A sale was substantially agreed, but not completed for several months. Between times came the beginning of the tax year. The Act provided that, for quoted shares, save in special . .
Lists of cited by and citing cases may be incomplete.
Capital Gains Tax
Updated: 25 May 2022; Ref: scu.215879