In HMRC v Rialas [2020] UKUT 367 (18 December 2020) the UT held that there was no income tax charge under the transfer of assets abroad (TOAA) rules where the taxpayer had made arrangements to facilitate the sale of shares by his business partner to a non-resident company owned by a trust of which he was beneficiary.
The taxpayer (R) was resident but not domiciled in the UK for the tax years in question. He owned 50% of the shares in Argo a UK company. Following the breakdown of relations with his business partner (who owned the other 50%) R set up an offshore discretionary trust in Cyprus and formed a new company (FV) wholly owned by the trust. At the discretion of the trustees R and his family were beneficiaries under the trust. Using a third-party loan FV...
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In HMRC v Rialas [2020] UKUT 367 (18 December 2020) the UT held that there was no income tax charge under the transfer of assets abroad (TOAA) rules where the taxpayer had made arrangements to facilitate the sale of shares by his business partner to a non-resident company owned by a trust of which he was beneficiary.
The taxpayer (R) was resident but not domiciled in the UK for the tax years in question. He owned 50% of the shares in Argo a UK company. Following the breakdown of relations with his business partner (who owned the other 50%) R set up an offshore discretionary trust in Cyprus and formed a new company (FV) wholly owned by the trust. At the discretion of the trustees R and his family were beneficiaries under the trust. Using a third-party loan FV...
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