Hancock & Anor v Revenue & Customs
Conversions of QCBs and non-QCBs must be treated separately for the purposes of section 116 TCGA 1992. Section 116 applies to the conversion of non-QCBs into QCBs, freezing the gain and bringing it into charge on disposal. The appellants' construction would defeat the purpose of the legislation and create an unintended loophole. The appeal is dismissed.
- Parties
- Appellant: Anthony Hancock; Appellant: Tracy Lee Hancock; Respondent: HM Revenue & Customs
- Jurisdiction
- England and Wales
- Judgment Date
- 25 May 2017
- Procedural Posture
- Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber)
- Outcome
- Appeal dismissed
- Legal Topics
- Capital Gains Tax, Statutory Interpretation, Corporate Reorganisation, Qualifying Corporate Bonds
Case Brief
Summary, issues, holding and outcome
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Parties
Anthony Hancock
Appellant
Tracy Lee Hancock
Appellant
HM Revenue & Customs
Respondent
Procedural Posture
Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber)
Legal Issues
- 1 Whether section 116 of the Taxation of Chargeable Gains Act 1992 applies to a transaction involving the conversion of both QCBs and non-QCBs into QCBs, and whether the gain on non-QCBs escapes CGT in such a transaction.
Ratio Decidendi
Conversions of QCBs and non-QCBs must be treated separately for the purposes of section 116 TCGA 1992. Section 116 applies to the conversion of non-QCBs into QCBs, freezing the gain and bringing it into charge on disposal. The appellants' construction would defeat the purpose of the legislation and create an unintended loophole. The appeal is dismissed.
Court Disposition
Appeal dismissed
Orders
- The appeal is dismissed.
Full Case Text
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