In A Kerrison v HMRC [2017] UKFTT 322 (19 April 2017) the FTT found that a scheme intended to create a loss failed as a result of the value shifting provisions (TCGA 1992 s 30).
Mr Kerrison had implemented a scheme known as the ‘Excalibur scheme’. He had subscribed for shares at par value in a newly incorporated Isle of Man company Broadgate before selling them to an unconnected company Braye for a similar sum together with a share buy-back for their ‘fair value’ plus 9.1%. Braye had exercised its option and sold the shares back to Mr Kerrison who had funded the purchase with borrowing. A British Virgin Islands subsidiary of Broadgate had then made an interest free loan to Mr Kerrison enabling him to repay his borrowing and the loan was subsequently waived. Finally ...
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In A Kerrison v HMRC [2017] UKFTT 322 (19 April 2017) the FTT found that a scheme intended to create a loss failed as a result of the value shifting provisions (TCGA 1992 s 30).
Mr Kerrison had implemented a scheme known as the ‘Excalibur scheme’. He had subscribed for shares at par value in a newly incorporated Isle of Man company Broadgate before selling them to an unconnected company Braye for a similar sum together with a share buy-back for their ‘fair value’ plus 9.1%. Braye had exercised its option and sold the shares back to Mr Kerrison who had funded the purchase with borrowing. A British Virgin Islands subsidiary of Broadgate had then made an interest free loan to Mr Kerrison enabling him to repay his borrowing and the loan was subsequently waived. Finally ...
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