CAPITAL GAINS TAX AND INCOME TAX – whether a loss arising as a result of two forward contracts over securities (and a related acquisition and disposal) which led to a loss in respect of shares or certificates of deposit and a matching gain in respect of gilts was allowable for capital gains tax purposes or deductible against miscellaneous income – no, because the principle outlined in WT Ramsay v IRC applied to the transactions – in addition, in the case of the shares, the loss was not allowable because it arose in connection with arrangements which had securing a tax advantage as a main purpose – whether the acquisition and disposal under the forward contracts were by way of bargain made at arm’s length – yes, because the terms of both contracts, together, could be taken into account for that purpose -whether the consideration paid for the shares under one of the forward contracts was given wholly and exclusively for the shares – the position was unclear – further evidence and submissions would have been required if that question had been relevant to the outcome of the appeals – appeals dismissed
Citations:
[2020] UKFTT 513 (TC)
Links:
Jurisdiction:
England and Wales
Capital Gains Tax, Income Tax
Updated: 24 November 2022; Ref: scu.661815