.png)
.png)
R Alberg (TC5357)
Circumstantial evidence is not enough
The taxpayer entered into a business venture with a partner JP. It involved buying a specialist food snacks and drinks business in financial difficulties from a company in administration and then running the business. The business was incorporated and both became directors.
The taxpayer paid £250 000 into the company. But the business proved unsuccessful administrators were appointed and the company was dissolved. The taxpayer claimed share loss relief ITA 2007 s 131.
The issue before the First-tier Tribunal was whether the company had issued shares to the taxpayer in consideration of the £250 000 he had invested in it. Each director already held one share so he was in any event a 50% shareholder.
The taxpayer could not recall whether he had seen a register of members of the company or share certificates but he remembered signing...
