InR T Patel and two others v HMRC[2016] UKFTT 78 (9 February 2016) the FTT found that a payment made to a company was not deductible for CGT purposes and did not qualify for entrepreneurs’ relief.
Mr Patel his mother and his wife were the sole shareholders of a company which had run a hotel; however the hotel property itself had belonged to them personally. The hotel had subsequently been demolished and a block of flats built in its place. The company had received 50% of the disposal proceeds when the property and flats had ultimately been sold. At the time of the disposals the appellants had paid £395 000 to the company. One of the issues was whether this amount was deductible when computing the appellants’ gain on the disposal of the property.
The Patels contended...
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InR T Patel and two others v HMRC[2016] UKFTT 78 (9 February 2016) the FTT found that a payment made to a company was not deductible for CGT purposes and did not qualify for entrepreneurs’ relief.
Mr Patel his mother and his wife were the sole shareholders of a company which had run a hotel; however the hotel property itself had belonged to them personally. The hotel had subsequently been demolished and a block of flats built in its place. The company had received 50% of the disposal proceeds when the property and flats had ultimately been sold. At the time of the disposals the appellants had paid £395 000 to the company. One of the issues was whether this amount was deductible when computing the appellants’ gain on the disposal of the property.
The Patels contended...
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