Market leading insight for tax experts
View online issue

Steven Price and others v HMRC

Failure of a capital loss scheme

In Steven Price and others v HMRC [2015] UKUT 164 (17 April 2015) the UT found that a capital loss scheme failed under the Ramsay principle.

The taxpayers had participated in schemes designed to create capital losses. Their success was predicated on the participants having spent large sums on acquiring assets and having realised very small amounts on their disposal. This in turn depended on the disapplication of TCGA 1992 s 17 which deems a transaction between parties who are not dealing at arm’s length to be at market value. The FTT had found that the transactions had been at arm’s length so that s 17 was not in point; however the FTT had drastically reduced the acquisition price (TCGA 1992 s 38) and therefore the loss. This was the main issue of this appeal.

The FTT had...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top