Oates & anr v HMRC [2014] UKUT 0409 (LC)
Wills & Trusts Law Reports | January/February 2015 #146Mr and Mrs Oates (the appellants) were taxpayers who had sold their home together with a substantial piece of scrub land with development potential for £725,000. The gain on the sale of the appellants’ home and garden was exempt under s222 of the Taxation of Chargeable Gains Act 1992 (TCGA) but capital gains tax was payable on the land. Section 52(4) TCGA required the apportionment between the value of the land and the house to be on a ‘just and reasonable basis’ however no method is laid down in the legislation to assess this.
<...HMRC v Lord Howard of Henderskelfe (dec’d) [2014] EWCA Civ 278
Wills & Trusts Law Reports | June 2014 #140Lord Howard of Henderskelfe was the owner of a painting by Sir Joshua Reynolds portraying a South Sea Islander called Omai. When he died on 27 November 1984, the painting devolved to the respondents as part of his estate and, eventually, they sold it at Sotheby’s on 29 November 2001 for £9.4m which, after deduction of commission and value added tax, represented a substantial gain over the value of the painting at the date of death. Ordinarily, the gain would be chargeable to capital gains tax and, initially, it was classified as such in the respondents’ trust and estate retur...
Wagstaff & anr v HMRC [2014] UKFTT 43 (TC)
Wills & Trusts Law Reports | April 2014 #138During 1990 Mr Wagstaff’s mother (Barbara) bought a flat for herself to live in (the flat). On 6 January 1996 she sold the flat to the appellants for £45,000. It was agreed that this was an arm’s length price. The sale was subject to the terms of an agreement of the same date (the agreement). The agreement provided that Barbara was entitled to continue to live at the flat at no cost until her death or remarriage, subject to a payment of £5,000.
Barbara continued to occupy the property until August 2005 when an accident meant she could no longer do so. After some time ...
AC v DC & ors [2012] EWHC 2032 (Fam)
Wills & Trusts Law Reports | June 2013 #130Mostyn J granted an application by the applicant (W) to set aside transactions pursuant to s37(2) of the Matrimonial Causes Act 1973 that had been made by the first respondent (H) on about 2 December 2010 by which H disposed of his 86.4% shareholding in D Holdings Limited (DH). None of the respondents opposed the application. There was an issue whether or not the effect of the order operated retrospectively for all purposes, including fiscal purposes. Judgment was reserved and further written submissions were invited to determine whether the order setting aside the transact...
Hanson v HMRCC [2012] UKFTT 314 (TC)
Wills & Trusts Law Reports | December 2012 #125In 2006, the appellant received loan notes as part of the consideration for a sale of a business. He disposed of these loan notes in 2008. The disposal gave rise to a chargeable gain for Capital Gains Tax (CGT) purposes of £1,261,387. Following the disposal the appellant read an article which suggested that UK holiday letting properties could be used to mitigate CGT charges. The appellant had already purchased such a property. He consulted with his usual accountants, Clarke Broom Flemming (CBF) who indicated to the appellant that a form of holdover relief would be available to mitigate t...
Mclaughlin v HMRCC [2012] UKFTT 174 (TC)
Wills & Trusts Law Reports | June 2012 #120James Albert McLaughlin (taxpayer), who was UK resident, engaged in a marketed planning scheme to avoid tax on a capital gain that he had made on the sale of a business. The scheme involved the acquisition by exchange of shares for overseas registered loan notes issued by two subsidiaries of Skandia UK Ltd (loan notes). The taxpayer then transferred the loan notes to SG Hambros Trust Company Ltd (trustee) to hold on the trusts of a settlor-interested settlement that he had established on 5 February 2003. By a deed of addition made a month later, the trustee added Adrian Gower, who was do...
Broome v HMRCC [2011] UKFTT 760 (TC)
Wills & Trusts Law Reports | May 2012 #119HMRC assessed B as liable to capital gains tax in respect of properties sold in the year ending 5 April 2001 pursuant to s2 of the Taxation of Chargeable Gains Act 1992. B owned three properties in his sole name, two of which were sold in the tax year ending 5 April 2001. B claimed not to be liable as he was not resident in the UK in that tax year. B lived and worked in the UK from 1980. He married in 1989. He became a self-employed consultant in 1995. In 1998 B and his wife separated and by July 1999 they were divorced. B continued to live at the matrimonial home in Hertfordshi...
BJ v MJ [2011] EWHC 2708 (Fam)
Wills & Trusts Law Reports | April 2012 #118The husband (H) and the wife (W) were both 65, having married in 1980. There was one child of the marriage (C), aged 25. The former matrimonial home was Green Farm, a substantial property set in 72 acres in Kent. Trust assets fell to be divided following divorce.
In order to mitigate tax on the floatation of his company (ABC), two Jersey trusts were created by H in 1994 (No. 1 Trust and No. 2 Trust) and a company incorporated in the British Virgin Island called Giloch Investments Ltd (Giloch). No. 1 Trust was a discrertionary trust for a class of beneficiaries comprising H, W, C, ...
Erdal v HMRCC [2011] UKFTT 87 (TC)
Wills & Trusts Law Reports | December 2011 #115E owned shares in a company involved in the manufacture of paper. E owned 17,131 ordinary shares and 53,476 A shares in the company. A charitable trust owned the majority shareholding in the company and the terms of the trust meant that it was unlikely that the company would ever be floated. The A shares were non-voting. The company’s articles restricted the sale or other transfer of the company shares.
The question at issue was the value of those shares as at 31 March 1982 for the purposes of Capital Gains Tax (CGT). E appealed against assessments in respect of CGT in the ...
Lawson v HMRCC [2011] UKFTT 346 (TC)
Wills & Trusts Law Reports | December 2011 #115The appellant appealed from an amendment to self assessment for the year ended April 2006. Between February 2002 and August 2005 the appellant had been the sole legal owner of a property. The appellant had calculated her capital gains tax liability on the basis that she and her husband were each entitled to claim annual capital gains tax exemption because they were joint beneficial owners. HMRC opened an enquiry and determined that the appellant was the sole beneficial owner. A review affirmed the determination on the basis that:
- (a) sole legal title was vested in the appel...