Consultancy business transfer

The taxpayer traded in partnership with his wife carrying out small-scale residential projects. The business ceased in 2006 three years after the taxpayer began a property development consultancy specialising in land infill.

The taxpayer entered into a written agreement in 2005: he would be paid £5 for each load of landfill needed on sites developed by PV a contractor firm.

In 2003 he became a director of Gloucester a company owned by a friend which issued shares to him in 2006. He transferred his contract with PV in return.

HMRC said the shares were consideration for a disposal of a right to future income but no business had been transferred to Gloucester that would qualify for incorporation relief under TCGA 1992 s 162.

The taxpayer appealed saying he had transferred a property development consultancy rather than just an asset.

The First-tier...