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Capital Gains

D Morgan (TC2596)

A client carried on a business through a “one-man” limited company, which has ceased trading but has retained profits. Because he is liable to higher rate tax in retirement, he proposes to gift the shares to his wife to enable her to draw dividends

The shares in a trading company are owned by an interest in possession trust, which was established to take advantage of retirement relief. Holdover relief will be available on a gift of shares from the trust to the shareholder’s son

Confusion as to the capital gains tax reliefs available often arises when a taxpayer has two residences

HMRC have changed their minds about the implications of the decision in Mansworth v Jelley as far as the cost of shares is concerned, which has caused confusion about losses brought forward and the costs to be taken into account in future disposals

Land Securities plc v CRC, Upper Tribunal (Tax and Chancery Chamber)

The co-owners of non-residential buildings wish to rationalise their ownership so that they each own individual properties rather than shares in the same properties

A higher-rate taxpayer holds substantial investments within the enterprise investment scheme, which have benefited from income tax relief and capital gains tax deferral relief

The shareholder directors of a limited company own shareholder loans. These were acquired at a low price from a previous and unconnected shareholder when there seemed little likelihood of repayment

Susan Bradley (TC2560)

Executors of Lord Howard of Henderskelfe (deceased) v CRC, Upper Tribunal (Tax and Chancery Chamber)

The decision of whether or not to make an overseas capital loss election is not straightforward

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