Stan Murray-Hession v Revenue and Customs (INCOME TAX/CORPORATION TAX : Exemptions and reliefs) [2016] UKFTT 612 (TC) (02 September 2016)

Stan Murray-Hession v Revenue and Customs (INCOME TAX/CORPORATION TAX : Exemptions and reliefs) [2016] UKFTT 612 (TC) (02 September 2016)

The appellant subscribed for shares within the meaning of s 135(2) ITA 2007 because the evidence established that Alan Gray held shares as nominee for the appellant, who paid consideration directly to the company under a binding agreement for new shares. The appellant did not acquire shares from Gray as a transfer, nor did he make a loan. The Companies House filings and administrators’ report did not reflect the true position. Therefore, the appellant is entitled to share loss relief.

Citation
[2016] UKFTT 612 (TC)
Parties
Appellant: Stan Murray-Hession; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
02 September 2016
Procedural Posture
Income Tax Appeal (share Loss Relief) / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed; claim for share loss relief upheld.
Legal Topics
Income Tax, Share Loss Relief, Capital Gains Tax, Company Law, Nominee Shareholding
Tax Law Income Tax Share Loss Relief Capital Gains Tax Company Law Nominee Shareholding

Case Brief

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Parties

Stan Murray-Hession

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal (share Loss Relief) / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether the appellant subscribed for shares within the meaning of s 135(2) Income Tax Act 2007
  2. 2 Whether the appellant is entitled to share loss relief under Chapter 6 Part 4 ITA 2007

Ratio Decidendi

The appellant subscribed for shares within the meaning of s 135(2) ITA 2007 because the evidence established that Alan Gray held shares as nominee for the appellant, who paid consideration directly to the company under a binding agreement for new shares. The appellant did not acquire shares from Gray as a transfer, nor did he make a loan. The Companies House filings and administrators’ report did not reflect the true position. Therefore, the appellant is entitled to share loss relief.

Court Disposition

Appeal allowed; claim for share loss relief upheld.

Orders

  • The closure notice disallowing the claim is set aside.
  • The amendment to the 2011-12 tax return is reversed to allow the share loss relief claim.