In JA McLaughlin v HMRC (TC01870 – 15 March) an individual (M) acquired some loan notes in 2002. In an attempt to avoid CGT on their disposal he established a settlement in February 2003 and transferred the loan notes to the trustees of the settlement. On 6 March 2003 the trustees made a deed of appointment relating to the loan notes in favour of a beneficiary (G) who was domiciled outside the UK. On the following day the trustees disposed of the loan notes. Following an enquiry HMRC issued an amendment charging tax on M. He appealed contending that the effect of TCGA 1992 s 71(1) was that G had become absolutely entitled to the loan notes and that the disposal had been by G. The First-tier Tribunal accepted this contention and allowed the appeal. Judge Shipwright held that...
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In JA McLaughlin v HMRC (TC01870 – 15 March) an individual (M) acquired some loan notes in 2002. In an attempt to avoid CGT on their disposal he established a settlement in February 2003 and transferred the loan notes to the trustees of the settlement. On 6 March 2003 the trustees made a deed of appointment relating to the loan notes in favour of a beneficiary (G) who was domiciled outside the UK. On the following day the trustees disposed of the loan notes. Following an enquiry HMRC issued an amendment charging tax on M. He appealed contending that the effect of TCGA 1992 s 71(1) was that G had become absolutely entitled to the loan notes and that the disposal had been by G. The First-tier Tribunal accepted this contention and allowed the appeal. Judge Shipwright held that...
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