What does it mean to ‘subscribe’ for shares? Perminder Gainda and Camilla Grundy discuss McLocklin v HMRC
The essential outcome of McLocklin was that a subscription of shares by a third party registered in his own name and utilising his own funds followed (ten months later) by a sale of those shares to the taxpayer (M) was treated as a subscription of shares by M himself. We consider here why the decision is not as surprising as it first sounds and why it is to be welcomed outside of the specific statutory context within which it arose.
In 2005 the company in question (GPL) was suffering from short-term cash flow issues. As a result the directors of GPL (W S T and M) agreed that...
