Harper v Revenue & Customs [2009] UKFTT 382 (TC) (29 December 2009)

Harper v Revenue & Customs [2009] UKFTT 382 (TC) (29 December 2009)

The appellant failed to prove that the shares had any value at the time of acquisition in June 2002 and December 2003; the evidence showed the company was in financial difficulty and the shares were of negligible value from the outset. Therefore, the shares did not 'become' of negligible value as required by statute, and the relief claimed was not available.

Citation
[2009] UKFTT 382 (TC)
Parties
Appellant: David Harper; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
29 December 2009
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Capital Gains Tax, Loss Relief, Negligible Value Claims, Share Valuation
Tax Law Capital Gains Tax Loss Relief Negligible Value Claims Share Valuation

Case Brief

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Parties

David Harper

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether shares acquired by the appellant in June 2002 and December 2003 'became' of negligible value for the purposes of s 24(2) TCGA 1992 and s 574 ICTA 1988, entitling him to loss relief.

Ratio Decidendi

The appellant failed to prove that the shares had any value at the time of acquisition in June 2002 and December 2003; the evidence showed the company was in financial difficulty and the shares were of negligible value from the outset. Therefore, the shares did not 'become' of negligible value as required by statute, and the relief claimed was not available.

Court Disposition

Appeal dismissed