In MR Klincke v HMRC (UT – 20 July) an individual (K) sold some shares in 1993 as part of a reorganisation of a company’s share capital within TCGA 1992 s 126. He received shares and loan notes as part of the consideration. At the time they were issued the loan notes contained a provision whereby the company (R) which issued them could convert them into dollars. However in October 1995 the terms of the loan note instrument were altered so that R’s right to convert them into dollars was cancelled. Shortly afterwards K redeemed the notes. On his 1995/96 tax return K treated his disposal of the notes as exempt from CGT.
The Revenue issued an assessment charging CGT on the gain and K appealed. The First-Tier Tribunal reviewed the evidence in detail and dismissed the appeal holding...
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In MR Klincke v HMRC (UT – 20 July) an individual (K) sold some shares in 1993 as part of a reorganisation of a company’s share capital within TCGA 1992 s 126. He received shares and loan notes as part of the consideration. At the time they were issued the loan notes contained a provision whereby the company (R) which issued them could convert them into dollars. However in October 1995 the terms of the loan note instrument were altered so that R’s right to convert them into dollars was cancelled. Shortly afterwards K redeemed the notes. On his 1995/96 tax return K treated his disposal of the notes as exempt from CGT.
The Revenue issued an assessment charging CGT on the gain and K appealed. The First-Tier Tribunal reviewed the evidence in detail and dismissed the appeal holding...
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