Husband and wife sold their business, arranging matters so as to avoid paying Capital Gains Tax by transferring their interest between members of a group of companies which was non-resident.
Held: The scheme was effective. The sole real issue was whether the company was in fact non-resident. The correct test was the actual domiciliary status of the company. The directors in this case were non-resident, and were not bypassed in their decisions about the company.
[2006] EWCA Civ 26, Times 20-Feb-2006, 78 TC 1, [2006] STC 443, 8 ITL Rep 468, [2006] STI 236, [2006] 2 BCLC 210, [2006] 1 WLR 1393, [2006] BTC 208
Bailii
Taxes Management Act 1970 56A, Taxation of hargeable Gains Act 1992 13
England and Wales
Citing:
Appeal from – Wood v Holden (Inspector of Taxes) ChD 8-Apr-2005
The parties had entered into complex share transactions for the sale of their trading business, and sought to avoid liability for capital gains tax.
Held: Gains on disposals between members of a non-resident group of companies were exempt. The . .
Cited – De Beers Consolidated Mines Ltd v Howe, Surveyor of Taxes HL 1905
The appellant Company was registered in the Cape Colony and it’s business was mining for diamonds in mines which it possessed in South Africa, and selling the diamonds there under annual contracts to a syndicate for delivery there. The Head Office . .
Cited by:
Cited – Revenue and Customs v Smallwood and Another CA 8-Jul-2010
The taxpayers had set up trusts which they said were based in Mauritius allowing them to claim double taxation relief. The Revenue had issued closure notices, confirmed by the SPCT, but overturned by the High Court. The Revenue appealed, saying that . .
Lists of cited by and citing cases may be incomplete.
Updated: 15 October 2021; Ref: scu.238136 br>