Question of ownership

The taxpayer’s 2005/06 return declared disposals of a business and land. She claimed rollover relief in respect of gains arising.

The sale contract showed a price of £1.6m and the beneficial owners of the land as the taxpayer and her husband with 25% of the proceeds allocated to the taxpayer.

The land had been used for a petrol station and a coal merchant both of which were run originally as a partnership between the couple.

The taxpayer was not taking part in the business by 1995 having fallen seriously ill. The accounts for the year ended 31 August 1999 showed a sole trade and the capital account including the land was in the husband’s sole name – but neither the fixed term deposit accounts nor the land had been put into his sole name.

Part of the sale proceeds on the disposal of the land had...