Taper relief due on shares owned as business and as non-business assets

This case was about taper relief and apportioning the gain on a disposal of shares between business and non-business assets. So it is largely of historical interest given that taper relief was abolished in 2008 and replaced with entrepreneurs’ relief which is now business asset disposal relief. Of greater note is the time taken to reach this point: the assessment under appeal was for 2002-03. Even allowing for litigating the avoidance scheme the time lag seems extraordinary.

The taxpayers had taken part in a tax scheme which the First-tier Tribunal had found  did not work (TC5757). As a result they were liable to capital gains tax on the assets disposed of. A dispute then arose as to the how the gain should be allocated for taper relief purposes (TCGA 1992 Sch A1 paras 3 and 21). Another First-tier Tribunal confirmed that time apportionment was the...