A UK Settlor/beneficiary was liable to be taxed on distribution gains from an offshore trust.
Ind Summary 22-May-1995
England and Wales
Appeal from – De Rothschild v Lawrenson (Inspector of Taxes) ChD 7-Dec-1993
A UK resident settlor was liable for tax on gains in a non-resident trust. . .
Lists of cited by and citing cases may be incomplete.
Updated: 21 January 2023; Ref: scu.79854
Share option scheme ‘approved’ by Inland Revenue after merger if grantor still in control.
Ind Summary 04-Sep-1995
England and Wales
Updated: 20 December 2022; Ref: scu.82358
A payment made from an estate which had been settled overseas by means of a deed of variation was deemed to have been a payment by the settlor, and taxable as such. In interpreting a deeming provision, the court musty consider carefully as between whom and for what purposes the deeming was to take effect.
Mrs K was to be regarded as the settlor because:
(1) the purpose of ss 24(7) and 24(11) Finance Act 1965 was to exclude from computation of gains any difference in value between the date of death and the date of the instrument which would otherwise be thought to accrue a person who made a deed of variation or other disposal by an instrument;
(2) those provisions were fully effective if they meant what they precisely B said but did not carry over into any further considerations of deeming than they provided; and
(3) those provisions disclosed no purpose which would lead to the conclusion that the words had wider and more effective results; in particular r there was no reason why they should be seen to be applicable in answering the question posed by s 42 of the 1965 Act, now ss 80-85 Finance Act 1981, as to whether the settlement was made by a person who was domiciled and resident or ordinarily resident in the United Kingdom either at the date of the chargeable gains or at the date of the making of the settlement.
Gazette 22-Jan-1992, [1991] STC 686
England and Wales
Appeal from – Marshall (Inspector of Taxes) v Kerr CA 7-Apr-1993
A variation of trusts in Jersey will be deemed to have been made by the deceased – no Capital Gains Tax arising. Interpretation of deeming Provisions. The taxpayer was not a settlor in an overseas trust. Deeming provisions should not generally be . .
Lists of cited by and citing cases may be incomplete.
Updated: 01 December 2022; Ref: scu.83431
CAPITAL GAINS TAX – whether house only or main residence of appellant – held yes -whether failure to include gain in tax return negligent conduct – held no – appeal allowed
[2012] UKFTT 570 (TC)
England and Wales
Updated: 09 November 2022; Ref: scu.466122
CAPITAL GAINS TAX – penalty under Finance Act 2007 Schedule 24 – reliance on agent – reasonable care to avoid inaccuracy – appeal allowed
[2012] UKFTT 314 (TC)
England and Wales
Updated: 03 November 2022; Ref: scu.462679
CAPITAL GAINS TAX – ss 60 and 71 TCGA- Was beneficiary to whom appointment made absolutely entitled? Yes as a matter of general law – Did artificiality mean it did not signify for tax purposes? No – Appeal allowed
[2012] UKFTT 174 (TC)
England and Wales
Updated: 03 November 2022; Ref: scu.462627
FTTTx CAPITAL GAINS TAX – whether improvements to property an allowable expense – whether ‘gifted deposit’ an allowable expense – appeal allowed in part in respect of improvements and dismissed in respect of ‘gifted deposit’
[2012] UKFTT 197 (TC)
England and Wales
Updated: 03 November 2022; Ref: scu.462642
Interest was not payable on a sum due under premature assessment to tax.
Gazette 09-May-1996, Times 17-Apr-1996
England and Wales
Updated: 31 October 2022; Ref: scu.78402
ECJ Failure of a Member State to fulfill obligations – Articles 36 and 40 of the EEA Agreement – Discriminatory taxation of capital gains realized on the redemption of shares in undertakings for collective investment established in Norway or in Iceland and not granted an authorization In accordance with Directive 85/611 / EEC
C-370/11, [2012] EUECJ C-370/11, ECLI:EU:C:2012:287
European
Updated: 28 October 2022; Ref: scu.459569
The consideration deemed to have been given on the acquisition of shares of parent company is to be at market value not at the base price. The Acts provisions for intra group transfer of assets do not apply to oust Capital Gains rules.
Gazette 08-Dec-1993, Times 15-Jul-1993, Ind Summary 09-Aug-1993
Income and Corporation Taxes Act 1970 273(1)
England and Wales
Updated: 26 October 2022; Ref: scu.84165
The valuation of transactions in shares bought and sold is to be in Sterling.
Gazette 24-Feb-1993
England and Wales
Updated: 26 October 2022; Ref: scu.78877
Capital gains tax – whether discovery assessments were valid – whether sub-section 29(1) TMA 1970 permitted a discovery assessment to be made when no new facts or changed view of the law had emerged – how the notional officer should be considered to approach the question posed by section 29(5) TMA on the basis of the information deemed to be available to him – Appeal allowed
[2011] UKFTT 467 (TC)
England and Wales
Updated: 17 September 2022; Ref: scu.443164
Whether the purchase and sale of a property within a short period of time was a trading activity and if not whether the nature of the Appellant’s stay in the property enabled him to qualify for principal private residence relief- appeal dismissed because during period of ownership Appellant stayed mainly in another property
[2011] UKFTT 309 (TC)
England and Wales
Updated: 17 September 2022; Ref: scu.443056
CAPITAL GAINS TAX – securities issued in exchange for shares – whether securities became qualifying corporate bonds on subsequent amendment of terms – yes – whether amendment amounted to a conversion of securities – yes – whether gain on subsequent redemption chargeable to tax – yes – appeal dismissed
[2010] UKUT 230 (TCC), [2010] STI 2349, [2010] STC 2032, [2010] BTC 1644
England and Wales
Updated: 01 September 2022; Ref: scu.428161
FTTTX CAPITAL GAINS TAX – value of shares in private limited company – shares disposed of in 1994 – stated consideration of pounds 20,000 – whether arm’s length sale – no -tax to be based on market value of shares – TCGA 1992 ss 17, 272 -identification of market value
[2010] UKFTT 457 (TC)
England and Wales
Updated: 27 August 2022; Ref: scu.426581
Capital gains tax (CGT) – enterprise investment scheme (EIS) – reinvestment relief – TCGA 1992, Sch 5B – whether amount received by subscriber in relevant period was repayment of debt or payment within Sch 5B, para 13(2) – fraud or malfeasance of agent – agent acting without authority – mistake – whether shares issued were ‘eligible shares’
[2010] UKFTT 235 (TC)
England and Wales
Updated: 23 August 2022; Ref: scu.422246
Effective 1 Jan 1992 s 46 re valuation of assets of insurance long term business.
Gazette 25-Mar-1992
England and Wales
Updated: 16 August 2022; Ref: scu.80529
The parties arranged for the issue of cross options for the purchase of gilts, which would prove when exercised to be very tax effective when a new system of taxing such transaction was in place, and planned losses could be set off against taxable gains elsewhere. The premiums were fixed by market forces, and there was a small risk that an overall loss would arise.
Lady Cosgrove And Lord Eassie And Lord President
[2003] ScotCS 188, [2003] STC 1035
Scotland
Appeal from – Inland Revenue Commissioners v Scottish Provident Institution HL 25-Nov-2004
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 . .
Cited – RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland SC 5-Jul-2017
The Court was asked whether an employee’s remuneration is taxable as his or her emoluments or earnings when it is paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself.
Held: The . .
Lists of cited by and citing cases may be incomplete.
Updated: 16 August 2022; Ref: scu.190900
The cost of the purchase of a release of covenant is deductible from the capital gain realised on the later sale.
Gazette 19-Mar-1997, Times 06-Mar-1997
England and Wales
Updated: 14 August 2022; Ref: scu.80754
The costs of negotiating with the Inland Revenue a valuation of shares, and of the appeal, were not deductible from the chargeable gain.
Times 28-Dec-1995, Ind Summary 29-Jan-1996
Chargeable Gains Act 1992 32 38(2)(b)
England and Wales
Updated: 14 August 2022; Ref: scu.79531
Parents incapacity to father more children not relevant on vesting entitlement. Number of children entitled not fixed by incapacity to have children but death
Gazette 13-Mar-1996, Times 11-Mar-1996
England and Wales
Updated: 06 August 2022; Ref: scu.80516
The choice of house for principal private residence relief is to be made and notified within two years, but is variable at any time.
Ind Summary 03-Jan-1994, Gazette 26-Jan-1994, Times 29-Nov-1993
Capital Gains Tax Act 1979 101(5)
England and Wales
Updated: 06 August 2022; Ref: scu.81033
Separate flats were separate entities despite being used for Taxpayer’s family.
Gazette 01-Apr-1992
Capital Gains Taxes Act 1979 101
England and Wales
Updated: 06 August 2022; Ref: scu.81461
A tax avoidance scheme was effective despite being complex and artificial. The documents affected third party rights in potential development land, and it was impossible to conclude it was a sham.
Times 07-Apr-1999
England and Wales
Appeal from – Roger Stone (HM Inspector of Taxes) v Richard Henry Hitch; Thomas Henry Hitch and Ian Geoffrey Handy CA 26-Jan-2001
The essence of whether a deed was a sham, was whether the deed proclaimed one set of intentions, but the parties acted out another. The deeds in this case were capable of being seen as a sham as respects one or more deeds in the combination of . .
Appeal from – Stone (HM Inspector of Taxes) v Hitch and others CA 26-Jan-2001
As an exception to the general rule, it is not invariably necessary to show, in relation to multi party transactions, that every party to it knew it was a sham.
Arden LJ said: ‘Third, the fact that the act or document is uncommercial, or even . .
Lists of cited by and citing cases may be incomplete.
Updated: 06 August 2022; Ref: scu.81395
UTTC Capital Gains Tax (CGT) – Enterprise Investment Scheme (EIS) – reinvestment relief – TCGA 1992, Sch 5B – whether subscription for eligible shares – whether amount received by subscriber in relevant period was repayment of debt within Sch 5B -nature of conditions to be satisfied for entitlement to reinvestment relief
[2012] UKUT 176 (TCC)
England and Wales
Updated: 05 August 2022; Ref: scu.462883
FTTTx CGT – Exemption and relief – Disposal of qualifying corporate bond: (‘QCB’) – Taxpayer acquiring loan notes in exchange for shares – Loan notes not QCBs at time of acquisition – Loan notes containing currency conversion right exercisable by issuer – Right cancelled – Whether notes becoming QCBs following cancellation of issuer’s currency conversion right – TCGA 1992 s117(2)
CGT – Conversion of securities – Crystallisation of capital gain on securities while non-QCBs – Whether transaction required to cancel issuer’s currency conversion right amounted to conversion – Yes – TCGA 1992 s132
[2009] UKFTT 156 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373702
FTTTx CAPITAL GAINS TAX – Disposal of shares – Majority shareholder in unquoted company – Consideration included earn-out rights – Whether valid election under TCGA 1992 s.138A – Return with computation on basis that election although no election in terms – No other possible explanation for computation – Held valid election – Appeal allowed
Neglect – No negligent conduct by agent in return – In any event TMA s.36(3) would have covered late election at appeal
[2009] UKFTT 80 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373593
Capital Gains Tax relief for a private residence was lost where no permanent occupation was established.
Times 14-Aug-1996
Capital Gains Tax Act 1979 101
England and Wales
Appeal from – Goodwin v Curtis (HM Inspector of Taxes) CA 18-Feb-1998
The occupation of a property as an ‘own or main residence’ is a question of fact and degree and ordinary usage. In this case, five weeks occupation by the taxpayer was insufficient to establish the exemption. . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 July 2022; Ref: scu.80920
A trustee was not allowed to claim on the basis that he had done an act in accordance with Inland Revenue practice, if he hadn’t.
Gazette 08-Jul-1992
England and Wales
Updated: 23 July 2022; Ref: scu.86934
Patten, Briggs, Simon LJJ
[2016] EWCA Civ 19, [2016] STI 237, [2016] BTC 3, [2016] 4 WLR 67, [2016] WLR(D) 49, [2016] STC 638, [2016] 3 All ER 203
England and Wales
Updated: 19 July 2022; Ref: scu.559158
Norris J
[2008] EWHC 1758 (Ch)
England and Wales
Updated: 18 July 2022; Ref: scu.271041
[2008] EWCA Civ 497
England and Wales
Cited – Davies and Another, Regina (on The Application of) v HM Revenue and Customs CA 16-Feb-2010
The parties disputed the interpretation of a booklet issued by the Revenue (IR20) as it defined the phrase ‘ordinarily resident’. In particular the taxpayer complained of an unannounced change of practice made after they had arranged their lives . .
Lists of cited by and citing cases may be incomplete.
Updated: 17 July 2022; Ref: scu.269966
[2008] EWHC 108 (Ch)
England and Wales
Updated: 13 July 2022; Ref: scu.264106
SCIT Capital Gains Tax; disposal of shares; whether sum paid to Appellant’s Church, was part of the consideration for the shares; Taxation of Chargeable Gains Act 1992 sections 1, 15, 16, 17, 18, 37, 38
[2007] UKSPC SPC00640
Updated: 12 July 2022; Ref: scu.262386
SCIT CAPITAL GAINS TAX – Computation of gain – Second hand life assurance policy – Surrender proceeds brought into computation of chargeable event gain for income tax – Whether surrender proceeds to be excluded as disposal consideration for CGT purposes – No – TCGA 1992 s37(1)
CAPITAL GAINS TAX – Acquisition consideration – Wholly and exclusively for the acquisition of the asset – Second hand life assurance policies acquired for andpound;210,000 above surrender value as part of tax avoidance scheme – Whether entire consideration incurred for acquisition of the policies or as part of pre-ordained tax avoidance scheme – Whether alternatively the andpound;210,000 was consideration for acquisition of the policies – No – Appeal dismissed – TCGA s.38(1)
[2007] UKSPC SPC00617, [2007] STI 1818, [2007] STC (SCD) 682
England and Wales
Updated: 11 July 2022; Ref: scu.259271
SCIT CAPITAL GAINS TAX – tax avoidance scheme – whether subscription for shares followed by the return of the subscription money by way of dividend (by an unlimited company), followed by disposal of the shares for a nominal amount five months after the subscription was a self-cancelling composite transaction – yes – whether HMRC can tax the settlor on the trustees’ gain under s 77 TCGA 1992 when the did not open an enquiry into the trustees’ return which claimed an offsetting loss – yes – whether (assuming that the dividend had not been ignored as part of the composite transaction) the settlor was taxable on the dividend under s 660A Taxes Act 1988 – no – or whether the trustees were taxable on it under s 686 – no.
[2008] UKSPC SPC00718
Income and Corporation Taxes Act 1988 660A
England and Wales
Updated: 10 July 2022; Ref: scu.278760
FTTTx CAPITAL GAINS TAX – Computation of gains – Expenditure – Shares – Capital contributions to Delaware Company – Whether incurred ‘on the asset’ – Yes – Whether reflected in the state or nature of the asset the time of disposal – No – Appeal dismissed – TCGA 1992 s.38(1)(b)
[2007] UKSPC SPC00589
Updated: 10 July 2022; Ref: scu.251319
[2006] EWHC 3350 (Ch)
Taxation of Chargeable Gains Act 1992 135
England and Wales
Updated: 09 July 2022; Ref: scu.247506
CAPITAL GAINS TAX – shareholder giving shares in private company to a company held within an insurance bond – whether the former shareholder and the insurance company were connected persons as acting together to secure or exercise control of the donee company with the result that s 167 TCGA 1992 prevents hold-over relief on the gift of shares from applying – yes – appeal dismissed
[2005] UKSPC SPC00462
England and Wales
Appeal From – Foulser and Another v HM Inspector of Taxes ChD 20-Dec-2005
The taxpayer company entered into an arrangement in which shares were purchased by a company based in Ireland and resold. A claim was made for holdover relief.
Held: The scheme failed. The restriction imposed did not infringe the right of . .
At Commissioners – Foulser and Another v Macdougall CA 17-Jan-2007
The taxpayers sought relief after giving shares in a company to another company owned by themselves. The taxpayers appealed refusal of hold over relief in respect of chargeable gains.
Held: The holdings in the recipient company made the . .
Lists of cited by and citing cases may be incomplete.
Updated: 03 July 2022; Ref: scu.229938
LT CAPITAL GAINS TAX- s47(1) of Taxes Management Act 1970 – valuation of half-share in house and garden – value as a vacant house – comparables – evidential value of anonymised comparables – whether adjustment to reflect lettings – development value of rear garden – adjustment to reflect half share – whether sale prices disclosed to Inland Revenue for stamp duty purposes admissible as evidence with consent of Tribunal – Inland Revenue valuation confirmed.
[2001] EWLands TMA – 207 – 2000
Taxes Management Act 1970 47(1)
England and Wales
Updated: 30 June 2022; Ref: scu.225687
[2002] EWCA Civ 1829
England and Wales
Updated: 08 June 2022; Ref: scu.189002
The taxpayer company employed a subsidiary company through which it conducted its trade in land. It then sought to represent the profits from that subsidiary within its own accounts as trading profits for corporation tax purposes. The commissioner viewed the arrangement as window dressing to maximise claims of expenditure against income.
Held: The rule required a company to show that the subsidiary had been acquired as trading stock, but any fiscal motive was irrelevant. A transaction might be ineffective where it was inexplicable save on fiscal grounds looked at as a whole. The asset had to be acquired in order to be sold in the normal course of trade and for profit. In the end it was a matter of fact for the commissioners. In this case they had directed themselves correctly in law, looking at the group as a whole. Appeal dismissed.
Lawrence Collins J
Times 08-Aug-2003, [2003] EWHC 1876 (Ch), Gazette 02-Oct-2003
England and Wales
Cited – Edwards (Inspector of Taxes) v Bairstow HL 25-Jul-1955
The House was asked whether a particular transaction was ‘an adventure in the nature of trade’.
Held: Although the House accepted that this was ‘an inference of fact’, on the primary facts as found by the Commissioners ‘the true and only . .
Cited – Reed v Nova Securities Ltd 1985
In order to convert an allowable loss into a trading loss to secure a tax advantage, it was only necessary that there had to have been an acquisition by a trading company ‘as trading stock’ . .
Cited – Coates v Arndale Properties Ltd 1984
A transaction might be so clearly inspired by fiscal considerations that its shape and character as a trading transaction would be insufficient to preserve its tax value as such. . .
Cited – Overseas Containers (Finance Ltd) v Stoker 1989
A transaction must be looked at as a whole in order to establish whether it was a genuine trading transaction eligible for tax relief, or was an action engendered solely by fiscal motives. . .
Cited – Ensign Tankers (Leasing) Ltd v Stokes (Inspector of Taxes) HL 6-May-1992
The appellants entered into partnerships with a film production company. By doing so they intended to make available to themselves first year allowances on the capital expenditure incurred. Loan agreements protected them from any eventual loss.
Appealed to – New Angel Court Ltd v Danny Adam (HM Inspector of Taxes) ChD 16-Mar-2004
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 . .
Lists of cited by and citing cases may be incomplete.
Updated: 08 June 2022; Ref: scu.185839
Extension of lease by Act was not effective to increase term from 16 to 50 years.
Gazette 26-Feb-1992
Capital Gains Tax Act 1979 106
England and Wales
Updated: 04 June 2022; Ref: scu.83048
Actual retirement occurred on a cessation even though that retirement had, at first, only been intended to be temporary.
Gazette 05-Jun-1996, Times 26-Apr-1996
Taxation of Chargeable Gains Act 1992 163
England and Wales
Updated: 04 June 2022; Ref: scu.83419
A farmer, anticipating retirement, applied for and obtained planning permission for the development of land on his farm. He ran down the farming on that land, and applied for relief upon retirement.
Held: Retirement relief should be denied to him, since at the time of his retirement, the land no longer formed part of the farm he was running.
Gazette 08-Sep-1993, Times 24-Jun-1993, Ind Summary 12-Jul-1993
England and Wales
Updated: 25 May 2022; Ref: scu.84664
Retirement relief was to be given on the sale of a milking parlour and yard when accompanied by a cessation of the trade involving those assets.
Ind Summary 23-Jan-1995, Gazette 11-Jan-1995, Times 13-Dec-1994
England and Wales
Updated: 19 May 2022; Ref: scu.82496
Receipt of ‘money’s worth’ for lease of land was not a capital sum derived from the underlying asset.
Times 22-Feb-1996
Taxation of Chargeable Gains Act 1992 22
Updated: 19 May 2022; Ref: scu.78965
Interest on late payment was reduced for allowance of time by Inland Revenue, and may be suspended during an appeal against an assessment.
Times 06-Dec-1994, Gazette 11-Jan-1995
Updated: 18 May 2022; Ref: scu.78403
A cottage which was not within the curtilage of the taxpayer’s residence was not entitled to the main residence exemption upon realisation on sale.
Gazette 08-Apr-1992
Capital Gains Tax Act 1979 101
England and Wales
Updated: 15 May 2022; Ref: scu.89313
The indexation allowance was to be applied before the straight line apportionment.
Ind Summary 26-Apr-1993
England and Wales
Updated: 15 May 2022; Ref: scu.89314
Exchange rate changes were irrelevant to a tax calculation though in foreign currency.
Times 24-Jan-1997
Capital Gains Tax Act 1979 40(2)
England and Wales
Updated: 15 May 2022; Ref: scu.80907
Where a UK resident created an offshore settlement under which he was a member of the class of potential beneficiaries, and the trust made loans to him which did not carry interest and where no request was in fact made for repayment over long periods, the loan amounted to a capital payment under the act as a ‘transfer of an asset and the conferring of any other benefit’ and so was chargeable to Capital Gains Tax.
Gazette 10-Feb-2000, Times 25-Feb-2000
Taxation of Chargeable Gains Act 1992 87, 97
Updated: 15 May 2022; Ref: scu.79479
Tenant farmer continuing business for two years after payment to land-owner on surrender of lease lost relief for business retirement.
Gazette 26-Feb-1998, Times 11-Feb-1998
Updated: 15 May 2022; Ref: scu.78245
Where a company ceased to be resident in the UK, and there was deemed as a result to be a transfer of shares between companies within the group, that transfer gave rise to a chargeable gain which was chargeable to Corporation Tax.
Times 05-Oct-1999
Income and Corporation Taxes Act 1970, Taxation of Chargeable Gains Act 1992 178
England and Wales
Updated: 10 May 2022; Ref: scu.80173
Capital Gains Tax/Taxation of Chargeable Gains : Other
[2018] UKFTT 431 (TC)
England and Wales
Updated: 26 April 2022; Ref: scu.621428
Capital Gains Tax/Taxation of Chargeable Gains : Other
[2018] UKFTT 430 (TC)
England and Wales
Updated: 26 April 2022; Ref: scu.621429
A tenement was valued, under the Finance (1909-10) Act 1910, as at 30th April 1909, the original total value pounds 400, the original assessable site value pounds 20, pounds 380 being the deduction made for buildings. In June 1911 the property was sold by a widow to her brother-in-law, a man up in years, who had long lived and carried on a draper’s business there. The price paid was pounds 650. Nothing admittedly had occurred calculated to affect the value of the buildings or the site since April 1909. The Inland Revenue claimed increment value duty on pounds 250, viz., on the pounds 650 less the pounds 380 which had been allowed for buildings in the original valuation, and less pounds 20, the original assessable site value. A referee being of opinion that the property had not altered in value since April 1909, but that the figures then taken were too low, made a new valuation, the total value pounds 470, the deduction for buildings pounds 400, the assessable site value pounds 70. As regarded the price obtained, he, purporting to act under section 25 4 ( d), deducted pounds 180, which he stated must be attributed to some personal consideration, bringing out the occasional site value at pounds 70.
Held (1) that the case being ruled by the English case of Lumsden v. Inland Revenue (v. infra) the deduction for buildings on the occasion of sale was pounds 400, the ‘like deductions’ in section 2 (2) ( a) meaning deductions ascertained by the same method as in the original valuation- i.e., by obtaining a gross value and total value by valuation and not by reference merely to the purchase price, which might or might not correspond with open market value; and (2) that no deduction for personal matters fell to be made, as that did not arise on the facts, the referee merely surmising, not finding as a fact, that part of the purchase price was due to personal matters. Increment value duty was consequently due on pounds 230, i.e., on pounds 650, less pounds 400 for buildings, and less pounds 20, the original assessable site value.
Earl Loreburn, Lord Atkinson, Lord Parker, Lord Sumner, and Lord Parmoor
[1914] UKHL 151
Scotland
Updated: 26 April 2022; Ref: scu.620734
Capital Gains Tax/Taxation of Chargeable Gains : Other – – non-resident CGT return – penalty of pounds 100 for failure to file return within 30 days of completion of house sale – whether error in notice of assessment as to period in paragraph 18(1)(c) Schedule 55 FA 2009 makes assessment invalid: no, s 114(1) TMA applies – whether date of disposal correctly shown on return: no – whether HMRC have shown penalty due: yes – whether reliance on third party reasonable excuse: yes – whether ignorance of law reasonable excuse: yes, following Perrin in Upper Tribunal – whether UK/Canada DTA applies – appeal allowed.
[2018] UKFTT 368 (TC)
England and Wales
Updated: 25 April 2022; Ref: scu.619367
Capital Gains Tax/Taxation of Chargeable Gains : Other – Capital Gains Tax – penalties – late filing of non-resident capital gains tax returns – whether reasonable excuse – whether ignorance of law an excuse – no – appeal dismissed
[2018] UKFTT 376 (TC)
England and Wales
Updated: 25 April 2022; Ref: scu.619377
Capital Gains Tax/Taxation of Chargeable Gains : CAPITAL GAINS TAX – non-resident CGT return – penalty of pounds 100 for failure to file return within 30 days of completion of house sale – whether error in notice of assessment as to period in paragraph 18(1)(c) Schedule 55 FA 2009 makes assessment invalid: no, s 114(1) TMA applies – whether HMRC have shown penalty due: yes – whether reliance on third party reasonable excuse: yes – whether ignorance of law reasonable excuse: yes, following Perrin in Upper Tribunal – appeal allowed.
[2018] UKFTT 295 (TC)
England and Wales
Updated: 25 April 2022; Ref: scu.619360
The claimant challenged the decisions of the Commissioners to issue him in 2016 with a follower notice and an accelerated payment notice in relation to gains arising to the trustees of a settlement from the disposal of assets during the 2000-2001 assessment year.
Cranston J
[2018] EWHC 1271 (Admin)
England and Wales
Updated: 23 April 2022; Ref: scu.618107
Capital Gains Tax – Unapproved Employee Share Options – grantor having discretion on exercise of option to satisfy option holder’s entitlement either by transfer of shares or payment of cash – whether s 144ZA TCGA disapplies the market value rule in s 17(1) TCGA
[2018] UKUT 130 (TCC)
England and Wales
Updated: 22 April 2022; Ref: scu.616365
Retirement relief is restricted to assets actually used within a family business.
Gazette 05-Mar-1997, Times 04-Mar-1997
Finance Act 1985 69(2)(b) 70(7)
England and Wales
Appeal from – Plumbly and others (Representatives of the Estate of S C Harbour Deceased) and Spencer (HM Inspector of Taxes) CA 17-Jun-1999
Retirement tax relief could be claimed by an individual on land owned through a limited company. There was no explicit requirement for direct ownership at the time of cessation. Here farmed land was sold by a limited company at the time of the . .
Appeal from – Plumbly and others (Representatives of the Estate of S C Harbour Deceased) and Spencer (HM Inspector of Taxes) CA 17-Jun-1999
Retirement tax relief could be claimed by an individual on land owned through a limited company. There was no explicit requirement for direct ownership at the time of cessation. Here farmed land was sold by a limited company at the time of the . .
Lists of cited by and citing cases may be incomplete.
Updated: 14 April 2022; Ref: scu.84776
Capital Gains Tax/Taxation of Chargeable Gains : Late Filing of Non-Resident Capital Gains Tax Returns – penalties – late filing of non-resident capital gains tax returns – whether reasonable excuse – whether ignorance of law an excuse – no – whether failure by tax adviser to alert taxpayer of need to make return an excuse – yes – appeal allowed
[2018] UKFTT 207 (TC)
England and Wales
Updated: 14 April 2022; Ref: scu.609275
Shares purchased from parent company after a re-organisation are to be valued at the base cost of their acquisition by the parent company.
Gazette 08-Feb-1995, Times 22-Nov-1994, Ind Summary 30-Jan-1995
Income and Corporation Taxes Act 1970 273(1)
Updated: 09 April 2022; Ref: scu.84164
Roll-over relief may be lost if a purchase is without vacant possession.
Times 09-Dec-1993
Taxation of Chargeable Gains Act 1992 152
England and Wales
Updated: 08 April 2022; Ref: scu.78864
Capital Gains Tax/Taxation of Chargeable Gains : Exemptions and Reliefs
[2018] UKFTT 17 (TC)
England and Wales
Updated: 04 April 2022; Ref: scu.604362
Patten, Floyd, Hamblen LJJ
[2018] EWCA 17 Civ
Taxation of Chargeable Gains Act 1992 115
England and Wales
Updated: 03 April 2022; Ref: scu.602967
FTTTx Capital Gains Tax – discovery assessments – penalties – whether or not there was a chargeable capital gain in 2008/2009 – yes – whether or not the assessments should be reduced further than as already amended – no – whether or not the inaccuracies were deliberate but not concealed – yes – whether or not the disclosure was prompted – yes – appeals dismissed
[2018] UKFTT 12 (TC)
England and Wales
Updated: 03 April 2022; Ref: scu.602934
FTTTx CAPITAL GAINS TAX – application to appeal out of time – relief sought for loss of earlier year – application refused – loss in any event not claimed in time and unallowable
[2018] UKFTT 8 (TC)
England and Wales
Updated: 03 April 2022; Ref: scu.602936
Capital Gains Tax/Taxation of Chargeable Gains : Disposal – part disposal – property development
[2017] UKFTT 816 (TC)
England and Wales
Updated: 02 April 2022; Ref: scu.600988
FTTTx CAPITAL GAINS TAX – Appeal against assessment and penalty – Whether expenditure incurred – Whether expenditure for enhancing the value of or defending title to or rights over the asset (s 38 TCGA)
[2017] UKFTT 860 (TC)
England and Wales
Updated: 02 April 2022; Ref: scu.600991
Capital Gains Tax – Tax Avoidance
[2017] UKUT 300 (TCC)
England and Wales
Updated: 30 March 2022; Ref: scu.595602
Capital Gains Tax
[2017] UKUT 344 (TCC)
England and Wales
Updated: 30 March 2022; Ref: scu.595605
Capital Gains Tax/Taxation of Chargeable Gains : Other – CAPITAL GAINS TAX – non-resident CGT return – penalties of Apounds 1,600 for failure to file return within 30 days of completion of house sale – whether disposal in 2015-16: not proved, so penalties not due – alternatively, whether assessment met requirements of paragraph 18 Schedule 55 FA 2009: no, but s 118 TMA applies – whether paragraph 4 Schedule 55 penalties properly imposed: no, Donaldson applies and no paragraph 4(1)(b) HMRC decision – whether reasonable excuse: yes – whether special circumstances decision by HMRC flawed: yes – decision that there were special circumstances substituted – penalties cancelled.
[2017] UKFTT 690 (TC)
England and Wales
Updated: 30 March 2022; Ref: scu.598980
Capital Gains Tax/Taxation of Chargeable Gains : Exemptions and Reliefs
[2017] UKFTT 658 (TC)
England and Wales
Updated: 30 March 2022; Ref: scu.594541
The test of whether land attached to a private dwelling in excess of a half hectare, was required for the reasonable enjoyment of the property was an objective one. The individual circumstances and requirements of the taxpayer should not affect the assessment. In this case, although the residence included stabling, land used for the horses stabled was not to be included. The keeping of horses was not an essential part of the use of the house as a residence.
Times 05-Dec-2000, Gazette 18-Jan-2001
Taxation of Chargeable Gains Act 1992 222
England and Wales
Appeal from – Longson v Baker (Inspector of Taxes) SCIT 8-May-2000
SCIT CAPITAL GAINS TAX – Private residence exemption – Whether gain on sale of house exempt – Extent of ‘the permitted area’ – Section 222 Taxation of Chargeable Gains Act 1992. . .
Appeal from – Longson v HM Inspector of Taxes CA 13-Mar-2001
The taxpayer disposed of his farmhouse, and sought exemption from Capital Gains Tax under sections 101 and 102 of the 1989 Act. The Revenue said it had not been his only or main residence. Contracts had been exchanged for its purchase in 1983, but . .
Lists of cited by and citing cases may be incomplete.
Updated: 29 March 2022; Ref: scu.83186
ECJ Articles 63 TFEU and 65 TFEU – Undertakings for collective investments in transferable securities (UCITS) – Different treatment of dividends paid to non-resident UCITS, subject to withholding tax, and dividends paid to resident UCITS, not subject to such tax – Whether it is necessary, for the purpose of determining whether the national measure is in conformity with the free movement of capital, to take account of the situation of shareholders – No such need
[2012] EUECJ C-338/11, ECLI:EU:C:2012:286
European
Order – FIM Santander Top 25 Euro Fi (Articles 63 Tfeu And 65 TFEU) C-338/11 ECJ 10-May-2012
ECJ 1 The references for a preliminary ruling concern the interpretation of Articles 63 and 65 TFEU concerning the difference in tax treatment between non-resident and resident collective investment undertakings . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 March 2022; Ref: scu.584359
Where there were losses on the sale of BES shares purchased before 1986, they were valued by applying indexation allowance to the value calculated as acquisition cost less allowable deductions.
Times 20-Jul-1998
Taxation of Chargeable Gains Act 1992 53
England and Wales
Updated: 25 March 2022; Ref: scu.85097
The court was asked whether a taxpayer may, in computing the gain accruing to him on the disposal of shares, bring into account by way of deduction expenditure incurred by him in buying his release from a personal contractual obligation to a third party restrictive of his ability to vote or sell those shares.
Longmore, Patten, Briggs LJJ
[2017] EWCA Civ 232
England and Wales
Updated: 24 March 2022; Ref: scu.581427
The costs of negotiating, and valuing the market value of shares with the Inland Revenue, are not deductible as expenses.
Times 16-Jul-1997, [1997] EWCA Civ 1898
Capital Gains Tax Act 1979 32(2)(b)
England and Wales
Updated: 23 March 2022; Ref: scu.79530
Legislation which created a clear anomaly can be interpreted so as to avoid the anomaly if the words used are sufficiently ambiguous as to allow an alternative construction.
Neuberger J discussed the case of Marshall v Kerr, saying: ‘It appears to me that the observations of Peter Gibson J, approved by Lord Browne-Wilkinson, in Marshall indicate that, when considering the extent to which one can ‘do some violence to the words’ and whether one can ‘discard the ordinary meaning’, one can, indeed one should, take into account the fact that one is construing a deeming provision. This is not to say that normal principles of construction somehow cease to apply when one is concerned with interpreting a deeming provision; there is no basis in principle or authority for such a proposition. It is more that, by its very nature, a deeming provision involves artificial assumptions. It will frequently be difficult or unrealistic to expect the legislature to be able satisfactorily to [prescribe] the precise limit to the circumstances in which, or the extent to which, the artificial assumptions are to be made.’
Neuberger J
Times 16-Jun-1997, [1997] STC 853
England and Wales
Cited – Marshall (Inspector of Taxes) v Kerr CA 7-Apr-1993
A variation of trusts in Jersey will be deemed to have been made by the deceased – no Capital Gains Tax arising. Interpretation of deeming Provisions. The taxpayer was not a settlor in an overseas trust. Deeming provisions should not generally be . .
Cited – Marshall (Inspector of Taxes) v Kerr HL 30-Jun-1994
A settlor by will was deemed to have had an interest as funds were passed to a Jersey Trust. The section merely made or allowed that a variation of a will would not be a taxable event in UK law. It had no other effects. A deed of family arrangement . .
Cited – Harding v Revenue and Customs CA 23-Oct-2008
Lapsed Currency conversion option lost status
The taxpayer appealed his assessment to Capital Gains Tax on his redemption of loan notes arising following the sale of his computer company. He said that they were qualifying corporate bonds. The question was whether a security in which a currency . .
Cited – Revenue and Customs v DCC Holdings (UK) Ltd SC 15-Dec-2010
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. . .
Cited – Hancock and Another v Revenue and Customs SC 22-May-2019
The taxpayers sold their shares in return for loan notes in the form of mixed qualifying (QCB) and non qualifying corporate bonds (Non-QCB) within section 115 of the 1992 Act. Gains on the disposal of QCB would be exempt from CGT. These were then . .
Lists of cited by and citing cases may be incomplete.
Updated: 09 February 2022; Ref: scu.82512
interaction of the rules which relate to corporate reorganisations and those which relate to qualifying corporate bonds
Lewison, Kitchen, Floyd LJJ
[2017] EWCA Civ 198, [2017] 1 WLR 4717, [2017] WLR(D) 363, [2017] STC 1496, [2017] STI 1325, [2017] BTC 14
Taxation of Chargeable Gains Act 1992
England and Wales
At FTTTx – Hancock and Hancock v Commissioners for Inland Revenue and Customs FTTTx 21-Jul-2014
FTTTx Capital gains tax – redemption of qualifying corporate bonds (QCBs) – scheme to avoid the application of s 116, TCGA to a conversion of non-QCBs into QCBs – s 116(1)(b) – whether a single conversion of . .
At UTTC – Revenue and Customs v Hancock and Another UTTC 18-Feb-2016
UTTC Capital gains tax – redemption of qualifying corporate bonds (QCBs) – scheme to avoid the application of s 116 TCGA to a conversion of non-QCBs into QCBs – s 116(1)(b) and s 132 – whether a single . .
Appeal From (CA) – Hancock and Another v Revenue and Customs SC 22-May-2019
The taxpayers sold their shares in return for loan notes in the form of mixed qualifying (QCB) and non qualifying corporate bonds (Non-QCB) within section 115 of the 1992 Act. Gains on the disposal of QCB would be exempt from CGT. These were then . .
Lists of cited by and citing cases may be incomplete.
Updated: 07 February 2022; Ref: scu.584526
FTTTx (Capital Gains Tax/Taxation of Chargeable Gains : Exemptions and Reliefs) CAPITAL GAINS TAX – Gift of business asset to UK-resident company by transferor with non-UK resident relatives – Hold-over relief claim disallowed by HMRC – Whether claim precluded by s 167 Taxation of Chargeable Gains Act 1992 – Yes – Whether construction of s 167 conforming with ECHR and EU law – Yes – Appeal dismissed
[2017] UKFTT 192 (TC)
England and Wales
Updated: 06 February 2022; Ref: scu.578537
FTTTx (Capital Gains Tax/Taxation of Chargeable Gains : Computation) CAPITAL GAINS TAX – asset purchased with, and sold for, Swiss Francs – computation of gain – rule in Bentley v Pike and Capcount Trading followed – Liechtenstein disclosure facility – amount of penalty chargeable
[2016] UKFTT 819 (TC)
England and Wales
Updated: 29 January 2022; Ref: scu.573991
FTTTx (Capital Gains Tax/Taxation of Chargeable Gains : Other) Capital Gains Tax – late payment penalty – Schedule 56 Finance Act 2009 – whether reasonable excuse – insufficiency of funds -whether outwith his control- yes – appeal allowed in part
[2016] UKFTT 810 (TC)
England and Wales
Updated: 29 January 2022; Ref: scu.573977
Capital Gains Tax/Taxation of Chargeable Gains : Computation
[2016] UKFTT 708 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 26 January 2022; Ref: scu.571810
UTTC INCOME TAX and CAPITAL GAINS TAX – negligible value claim – TCGA 1992 s 24(2) – whether shares were already of negligible value at acquisition -whether First-tier Tribunal’s affirmative conclusion undermined by its overlooking paragraph of statement of agreed facts – no – finding of negligible value on acquisition fully justified – appeal dismissed
[2016] UKUT 381 (TCC)
Bailii
England and Wales
Income Tax, Capital Gains Tax
Updated: 24 January 2022; Ref: scu.570422
FTTTx CAPITAL LOSS – relief – shares becoming of negligible value – ICTA s 574 – whether shares subscribed for or purchased from third party – purchased – relief against income not available – appeal dismissed
[2010] UKFTT 566
Bailii
England and Wales
Capital Gains Tax
Updated: 20 January 2022; Ref: scu.567582
Capital Gains Tax — whether property was taxpayer’s only or main residence — meaning of residence — Section 222 Capital Gains Act 1992 — appeal dismissed
[2010] UKFTT 582 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 20 January 2022; Ref: scu.567576
FTTTX Capital Gains Tax — computation of gain — disposal between husband and wife — section 58 Taxation of Chargeable Gains Act 1992 — taxpayer’s return computed gain on the market value acquisition cost — appeal against closure notice re-computing gain — whether Statement of Account constituted a closure notice — appeal against surcharge — appeal dismissed
[2010] UKFTT 611 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 20 January 2022; Ref: scu.567544
FTTTx CAPITAL GAINS TAX – PENALTIES – application to admit oral witness evidence – residential property acquired with intention of own occupation – never occupied – change of intention – whether property held as an adventure in the nature of a trade or as a capital asset – HMRC amendment to appellant’s return upheld – penalties for failure to notify chargeability and inaccuracy – whether due – two tax-geared penalties in respect of the same tax – TMA s 97A – whether mitigation percentages correct – penalties varied – appeals dismissed
[2016] UKFTT 345 TC
Bailii
England and Wales
Capital Gains Tax
Updated: 17 January 2022; Ref: scu.564841
[2008] EWHC 266 (Ch)
Bailii
England and Wales
Capital Gains Tax
Updated: 15 January 2022; Ref: scu.264595
Capital Gains Tax/Taxation of Chargeable Gains : Computation – whether expenditure deductible in computing chargeable gain – whether entrepreneurs’ relief available – whether HMRC could issue a discovery assessment – appeal dismissed
[2016] UKFTT 78 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 10 January 2022; Ref: scu.559937
The rules against intra-company depreciation transactions used to create artificial losses applied also to the indexation of gains.
Times 25-Jun-1997
Chargeable Gains Act 1992 176
England and Wales
Capital Gains Tax
Updated: 09 January 2022; Ref: scu.89771
(Inner House) The House was asked whether the settlement payment of pounds 12 million by the appellant was made for a contingent liability in respect of representations made on a disposal by way of sale of the appellant’s shares in MPLC within the meaning of section 49(1)(c) of the Act, so as to require an adjustment of the appellant’s liability to capital gains tax under section 49(2).
The Lord President
[2014] ScotCS CSIH – 113, 2015 SLT 169, 2015 SC 392, [2015] STC 659, 2015 GWD 2-56, [2015] BTC 1, [2014] CSIH 113
Bailii
Scotland
Capital Gains Tax
Updated: 02 January 2022; Ref: scu.550118
Capital Gains Tax/Taxation of Chargeable Gains : Computation
[2015] UKFTT 223 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 30 December 2021; Ref: scu.547396
Capital Gains Tax/Taxation of Chargeable Gains : Exemptions and Reliefs
[2015] UKFTT 168 (TC)
Bailii
England and Wales
Capital Gains Tax
Updated: 30 December 2021; Ref: scu.547376