Payment for asset transfer between connected parties was a distribution
In HMRC v J Conran;JC Vision Ltd v HMRC [2023] UKUT 166 (TCC) (12 July 2023) the Upper Tribunal (UT) upheld the decision of the First-tier Tax Tribunal (FTT) that the market value of assets transferred from a limited liability partnership to a limited company (which were connected parties) was £1 (and not £8.25m) and therefore the purchasing company was not entitled to intangibles relief and the majority partner of the partnership that sold the assets did not realise a capital gain. However the UT set aside the decision of the FTT that the consideration paid could not be treated as a distribution and remade that decision holding that the £8.25m did constitute a distribution in the hands of the majority partner.
A business of designing manufacturing and marketing Jasper Conran (JC) branded optical products was...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Payment for asset transfer between connected parties was a distribution
In HMRC v J Conran;JC Vision Ltd v HMRC [2023] UKUT 166 (TCC) (12 July 2023) the Upper Tribunal (UT) upheld the decision of the First-tier Tax Tribunal (FTT) that the market value of assets transferred from a limited liability partnership to a limited company (which were connected parties) was £1 (and not £8.25m) and therefore the purchasing company was not entitled to intangibles relief and the majority partner of the partnership that sold the assets did not realise a capital gain. However the UT set aside the decision of the FTT that the consideration paid could not be treated as a distribution and remade that decision holding that the £8.25m did constitute a distribution in the hands of the majority partner.
A business of designing manufacturing and marketing Jasper Conran (JC) branded optical products was...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
