An individual who gifts shares to a charity can claim tax relief on the value of those shares. HMRC has been concerned by a number of cases where shares have been gifted soon after acquisition and the value has increased so much that the tax relief claimed on the gift is greater than the original cost so that the taxpayer ends up better off than he would have been had he not acquired the shares in the first place. In N Close and others v HMRC [2022] UKFTT 193 (TC) (13 May 2022) the FTT dismissed appeals concerning the correct market value of shares in an AIM company (qualifying investments) that were gifted to charity for income tax relief purposes. HMRC reserved its position on whether there had been a tax avoidance motive but argued on pure valuation principles that the...
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An individual who gifts shares to a charity can claim tax relief on the value of those shares. HMRC has been concerned by a number of cases where shares have been gifted soon after acquisition and the value has increased so much that the tax relief claimed on the gift is greater than the original cost so that the taxpayer ends up better off than he would have been had he not acquired the shares in the first place. In N Close and others v HMRC [2022] UKFTT 193 (TC) (13 May 2022) the FTT dismissed appeals concerning the correct market value of shares in an AIM company (qualifying investments) that were gifted to charity for income tax relief purposes. HMRC reserved its position on whether there had been a tax avoidance motive but argued on pure valuation principles that the...
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