In J Myers v HMRC (and related appeals) (TC02703 – 17 May) an individual (M) entered into an avoidance scheme intended to create a large tax loss in 2006. He exercised an option to buy some shares in a trading company (S) for a nominal price of £6m. This nominal price was payable to a discretionary trust of which M was the principal beneficiary and whose assets consisted mainly of that debt. Accordingly the economic effect of the scheme was to transfer almost £6m of M’s assets into that discretionary trust. A few days later M sold the shares for £552. On his 2005/06 tax return he claimed that he had made a tax loss of £5 999 448 on the transaction which would be available for offset against his income (under ICTA 1988 s 574). HMRC issued an amendment rejecting the claim....
