swarb.co.uk - law index
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Capital Gains Tax - From: 2004 To: 2004
This page lists 11 cases, and was prepared on 20 May 2019.
Weston, Regina (on the Application Of) v Inland Revenue [2004] EWHC 1069 (Admin)
2 Mar 2004
Admn
Moses J
Capital Gains Tax
[ Bailii ]
New Angel Court Ltd v Danny Adam (HM Inspector of Taxes) [2004] EWCA Civ 242; Times, 12 April 2004
16 Mar 2004
ChD
Lord Justice May The Hon Mr Justice Parker Lord Phillips Of Worth Matravers, Mr
Capital Gains Tax
The taxpayer company had acquired an asset from a company within the same group. It had been treated as trading stock. The inspector sought to deny transfer of the resulting trading loss between the companies. Held: The claim and appeal was to be allowed. The properties if sold outside the group would have attracted loss relief, and the purpose of the transfer was in these circumstances not relevant. The Act looked to whether there was a trading purpose for the transfer. That issue was satisfied.
Taxation of Chargeable Gains Act 1992 173(1)
1 Cites
[ Bailii ]
Jerome v Kelly (Her Majesty's Inspector of Taxes) [2004] UKHL 25; Times, 20 May 2004; [2004] 21 EGCS 151; [2004] STI 1201; [2004] 2 All ER 835; [2004] 1 WLR 1409; [2004] NPC 75; [2004] WTLR 681; [2004] STC 887; 76 TC 147; [2004] BTC 176
13 May 2004
HL
Lord Nicholls of Birkenhead, Lord Hoffmann, Lord Scott of Foscote, Lord Walker of Gestingthorpe, Lord Brown of Eaton-under-Heywood
Capital Gains Tax, Trusts, Land
In 1987, trustees holding land for various beneficiaries in undivided shares entered into a contract to sell it to a purchaser. In 1989 Mr and Mrs Jerome, who were absolutely entitled to interests in the land, assigned part of their beneficial interests (subject to the contract) to the trustees of two Bermuda settlements. By three conveyances in 1990-1992, the original trustees completed the contract of sale. The revenue claimed that the disposal was made at the time of the contract; the taxpayer argued for the time of the conveyances. Held: The section did not provide a clear answer for this situation. The section was intended to fix the time of disposal. It was not intended to impose a liability to tax upon a person who would not be treated as having made a disposal under the carefully constructed scheme for taxing the disposals of assets held on trust, particularly where this might lead to a double charge to tax.
Lord Walker said that "beneficial ownership of the land is in a sense split between the seller and buyer on the provisional assumptions that specific performance is available and that the contract will in due course be completed . . "
Capital Gains Tax Act 1979 46 58
1 Cites
1 Citers
[ House of Lords ] - [ Bailii ]
Marks v HM Inspector of Taxes [2004] UK SPC00418
23 Jun 2004
SCIT
Capital Gains Tax
SCIT CAPITAL GAINS TAX - valuation of shares - TCGA 1992 ss 35(2), 55(1), 272(1), (2), 273 - small unquoted company - nature of material hypothetical purchaser would take into account - approach to be adopted
Taxation of Chargeable Gains Act 1992 35(2) 55(1) 272(1) 273
[ Bailii ]
Weston v Garnett (Inspector of Taxes) Times, 07 July 2004; [2004] EWHC 1607 (Ch); [2005] STC 617
25 Jun 2004
ChD
Moses J
Capital Gains Tax
The taxpayer entered into a scheme for the issue and disposal of corporate loans. He appealed a finding that the loans were caught by section 115 which disallowed exemption because they did not represent a normal commercial loan. Held: It was a requirement that the debt 'has at all times represented a normal commercial loan', which phrase was defined by the 1988 Act. The loan notes were pregnant with profit, and were convertible after six months into new loan notes of the same par value. The second loan notes would, after a similar delay be convertible into shares in the company. The right of conversion carried an indirect right of conversion into something other than corporate bonds. The commissioners decision was correct. "I rest my decision on the wording of section 117(1). The rights carried by the first loan notes included the rights to convert into the shares of Carraldo, and the process by which those rights could be exercised was mere machinery. Those rights fell within section 117 and preclude the characterisation of those loan notes as normal commercial loans within the meaning of that section. For those reasons, which do no more than echo the reasoning of [the special commissioner] at paragraph 15 of his decision, this appeal is dismissed."
Taxation of Chargeable Gains Act 1992 115 - Income and Corporation Taxes Act 1988 Sch18 para1(5)
1 Citers
David Robson v Eric Mitchell (HM Inspector of Taxes) [2004] EWHC 1596 (Ch); Times, 22 July 2004
8 Jul 2004
ChD
The Honourable Mr Justice Patten
Capital Gains Tax
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.
Taxation of Chargeable Gains Act 1992 253(1)
1 Cites
1 Citers
[ Bailii ]
Marks v HM Inspector of Taxes [2004] UKUKSPC SPC00428; [2004] STI 2259; [2004] STC (SCD) 503
8 Sep 2004
SCIT
Income Tax, Capital Gains Tax
SCIT Income tax - loss relief - TA 1988 s 574 - whether allowable loss for capital gains tax purposes
Capital gains tax - whether shares becoming of negligible value - whether claim made - form of claim - whether date specified
Capital gains tax - whether share issue a bargain other than at arm's length - whether a reorganisation
Jurisdiction - estoppel - whether available against Crown - conditions for claim based on "legitimate expectation" - method of seeking remedies
[ Bailii ]
T and Another v HM Inspector of Taxes [2004] UKSC SPC00438
4 Nov 2004
SCIT
J David Demack
Capital Gains Tax
SCIT CAPITAL GAINS TAX - retirement relief - whether appellants made material disposal for purposes of s.163 TCGA 1992 when they made gifts to their three children of interests in assets of farming partnership - if so, sale of certain building land was associated disposal for purposes of s.164 and appellants qualified for retirement relief - appeal allowed
[ Bailii ]
Hicks v Davies (HM Inspector of Taxes) [2004] UKSC SPC00443
16 Nov 2004
SCIT
Capital Gains Tax
1 Citers
[ Bailii ]
Inland Revenue Commissioners v Scottish Provident Institution [2004] UKHL 52; Times, 26 November 2004; [2005] 1 All ER 325; [2005] 1 WLR 3172; [2004] UKHL TC - 76 - 538
25 Nov 2004
HL
Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Hope of Craighead and Lord Walker of Gestingthorpe
Capital Gains Tax
The parties anticipated a change in the system for taxing gains on options to buy or sell bonds and government securities. An option would be purchased before the change and exercised after the change to create losses which could be set off against other taxable gains. The risk to the market maker (Citibank) was set off by a collateral agreement. Held: The options should be treated as a single transaction, and ineffective to achieve the tax saving intended. The minimal risk that the option would not be exercised because of a fall in prices was not sufficient to displace the fact that the purpose of transaction was not economic but to save tax: "We think that it would destroy the value of the Ramsay principle of construing provisions such as section 150A(1) of the 1994 Act as referring to the effect of composite transactions if their composite effect had to be disregarded simply because the parties had deliberately included a commercially irrelevant contingency, creating an acceptable risk that the scheme might not work as planned."
Corporation tax - Cross options in respect of gilts - Collateral amount - Ramsay principle - Whether options self-cancelling - Whether single composite transaction with no commercial purpose other than tax avoidance - Whether commercially irrelevant contingency prevented finding of single composite transaction - Whether appropriate to compute profit and loss in respect of each option on a mark to market basis - Whether each option a qualifying contract - Whether appropriate to attach a nil value to each option on morning of 1 April 1996 - Whether appropriate to exclude collateral amount from computation - Debt contracts - Interpretation of deeming provisions - Finance Act 1994, ss 147A, 150A, 154, 155, 156 and 177(2), Finance Act 1996, Sch 15, para 25.
FinanceAt 1994
1 Cites
1 Citers
[ Bailii ] - [ House of Lords ] - [ Bailii ]
Wakefield v HM Inspector of Taxes [2005] UKSPC SPC00471
13 Dec 2004
SCIT
Capital Gains Tax
Capital gains tax - rollover relief on reinvestment - whether "arrangements for the acquisition of the relevant shares" - repayments from another company controlled by taxpayer of loans made by him - whether a "return of value" denying relief - yes - appeal dismissed - Capital gains tax - rollover relief on reinvestment - timing of issue of shares
[ Bailii ]
