.png)
.png)
R Brown (TC3118)
The taxpayer submitted his 2005/06 tax return in January 2008 claiming income tax relief under TA 1988 s 574 on the basis shares in a company had become of negligible value. HMRC refused the claim because the shares continued to have hope value.
The taxpayer had bought 1 000 shares in a research and development business for £250 000 in 2002. The company fell into financial difficulties and was kept afloat by a single investor who was also the managing director.
New shares were released in 2005 at £1 each which the Revenue cited at the taxpayer’s the First-tier tribunal appeal as evidence that the shares were not of negligible value.
The tribunal disagreed saying an offer of shares at £1 did not give the taxpayer’s shares the same value. An investor who looked at the company’s 2004 and 2005 accounts would see that liabilities exceeded...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
