In J Blackwell v HMRC[2017] EWCA Civ 232 (6 April 2017) the Court of Appeal found that an amount paid to obtain the release of personal obligations relating to shares could not be deducted when computing the CGT due on disposal of the shares.
Mr Blackwell held shares in BP Holdings. In 2003 following an unsuccessful takeover attempt by Taylor & Francis Group Mr Blackwell entered into an agreement with Taylor & Francis accepting obligations in relation to his shares in return for £1m.
In 2006 Mr Blackwell paid £17.5m to be released from his obligations in order to sell his shares for over £100m. He sought to deduct the £17.5m under TCGA 1992 s 38(1)(b) in computing his capital gain on the sale of the shares. A deduction was allowable either if the expenditure was reflected...
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In J Blackwell v HMRC[2017] EWCA Civ 232 (6 April 2017) the Court of Appeal found that an amount paid to obtain the release of personal obligations relating to shares could not be deducted when computing the CGT due on disposal of the shares.
Mr Blackwell held shares in BP Holdings. In 2003 following an unsuccessful takeover attempt by Taylor & Francis Group Mr Blackwell entered into an agreement with Taylor & Francis accepting obligations in relation to his shares in return for £1m.
In 2006 Mr Blackwell paid £17.5m to be released from his obligations in order to sell his shares for over £100m. He sought to deduct the £17.5m under TCGA 1992 s 38(1)(b) in computing his capital gain on the sale of the shares. A deduction was allowable either if the expenditure was reflected...
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