We have a client who is affected by the Foskett Panel review: www.foskettpanel.com.
Our client accepted a fixed sum award. We understand that HMRC’s view is that the fixed sum award arises from the disposal of a chargeable asset. The chargeable asset being the ‘contractual rights arising under your re-review opt-in agreement’ and consequently is subject to capital gains tax and that HMRC considers it unlikely that there will be s 38 allowable expenditure.
Although we accept that the award is subject to CGT we have been considering whether there is scope to argue that the Zim Properties extra statutory concession (D33) could apply on the basis that there was a right of action and furthermore could it be argued that there was no underlying asset?
If there was no underlying asset then the first £500 000 of the award would be exempt...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
