BADR and trusts:Trustees of the Peter Buckley Settlement v HMRC [2024] UKFTT 29 (TC) (4 January 2024) emphasises an important point about business asset disposal relief and trusts. A trust can obtain relief on a disposal of a qualifying asset (in this case company shares) provided that (broadly) a beneficiary also qualifies for relief in his or her own right. Here there was only one share in issue. This was owned by the trust. The beneficiary held no shares personally and thus did not qualify himself. As a consequence the trust’s disposal did not attract relief. The taxpayer’s representative tried hard to argue that the individual’s role as trustee of the settlement gave him the necessary level of ownership (particularly as he was also the sole director of the company) and even invoked the Duke of Westminster case in his submission. But this was to no avail. The legislation was...
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BADR and trusts:Trustees of the Peter Buckley Settlement v HMRC [2024] UKFTT 29 (TC) (4 January 2024) emphasises an important point about business asset disposal relief and trusts. A trust can obtain relief on a disposal of a qualifying asset (in this case company shares) provided that (broadly) a beneficiary also qualifies for relief in his or her own right. Here there was only one share in issue. This was owned by the trust. The beneficiary held no shares personally and thus did not qualify himself. As a consequence the trust’s disposal did not attract relief. The taxpayer’s representative tried hard to argue that the individual’s role as trustee of the settlement gave him the necessary level of ownership (particularly as he was also the sole director of the company) and even invoked the Duke of Westminster case in his submission. But this was to no avail. The legislation was...
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