In DW Hankinson v HMRC (No 3) (Upper Tribunal – 30 September) a company director (H) who was born in the UK became the managing director of a UK company (B) in 1982. In 1987 he transferred his shares in B to family trusts resident outside the UK. In 1997 these trusts sold their holdings in B and realised substantial capital gains but retained an interest in B. In 1998 H began working for a Netherlands subsidiary of B while continuing to be chairman of B. In March 1999 the capital gains which H’s family trusts had realised in 1997 were crystallised.
H submitted a 1998/99 tax return stating that he had not been resident or ordinarily resident in the UK and that he had been working in the Netherlands during that year. In 2004/05 HMRC issued a ‘discovery’ assessment charging CGT...
