Schofield v HM Revenue and Customs [2012] EWCA Civ 927 (11 July 2012)

Schofield v HM Revenue and Customs [2012] EWCA Civ 927 (11 July 2012)

The court held that the four options formed a single, pre-ordained, self-cancelling scheme designed solely for tax avoidance, and that the Ramsay principle applied. Therefore, the loss claimed by Mr Schofield was not a real, allowable loss under the TCGA, as the scheme did not create any genuine disposal or loss for...

Source-derived case information.

Citation
[2012] EWCA Civ 927
Parties
Appellant: Howard Peter Schofield; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 July 2012
Procedural Posture
Appeal / Court of Appeal (civil Division) on Appeal From the Upper Tribunal (tax and Chancery Chamber)
Outcome
Appeal dismissed
Legal Topics
Capital Gains Tax, Tax Avoidance, Allowable Losses, Composite Transactions, Purposive Construction
Tax Law Capital Gains Tax Tax Avoidance Allowable Losses Composite Transactions Purposive Construction

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Parties

Howard Peter Schofield

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

Appeal / Court of Appeal (civil Division) on Appeal From the Upper Tribunal (tax and Chancery Chamber)

Legal Issues

  1. 1 Whether the loss claimed by Mr Schofield on the disposal of options was an allowable loss for capital gains tax purposes under the Taxation of Chargeable Gains Act 1992 (TCGA)
  2. 2 Whether the Ramsay principle applies to disregard individual steps in a pre-ordained tax avoidance scheme

Ratio Decidendi

The court held that the four options formed a single, pre-ordained, self-cancelling scheme designed solely for tax avoidance, and that the Ramsay principle applied. Therefore, the loss claimed by Mr Schofield was not a real, allowable loss under the TCGA, as the scheme did not create any genuine disposal or loss for capital gains tax purposes.

Court Disposition

Appeal dismissed

Orders

  • Mr Schofield's appeal is dismissed.