Fard v Revenue & Customs [2011] UKFTT 63 (TC) (18 January 2011)

Fard v Revenue & Customs [2011] UKFTT 63 (TC) (18 January 2011)

Shares acquired by the appellant from his father were not 'subscribed for' within the meaning of section 574 ICTA 1988, as they were not issued to him by the company in consideration of money or money’s worth. Therefore, loss relief was not available for those shares.

Citation
[2011] UKFTT 63
Parties
Appellant: Farzad Fard; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 January 2011
Procedural Posture
Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Capital Gains Tax, Loss Relief, Share Subscription, Section 574 ICTA 1988
Tax Law Income Tax Capital Gains Tax Loss Relief Share Subscription Section 574 ICTA 1988

Case Brief

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Parties

Farzad Fard

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the appellant was entitled to loss relief under section 574 ICTA 1988 for shares acquired by transfer from family rather than by subscription.

Ratio Decidendi

Shares acquired by the appellant from his father were not 'subscribed for' within the meaning of section 574 ICTA 1988, as they were not issued to him by the company in consideration of money or money’s worth. Therefore, loss relief was not available for those shares.

Court Disposition

Appeal dismissed

Orders

  • No relief for losses on shares acquired by transfer from family under section 574 ICTA 1988.
  • Recommendation that HMRC negotiate payment terms and consider waiving interest.