News-taxcase-Boparan

Personal company

The taxpayer and his wife owned properties which they let to a trading company on commercial terms. They held 53 shares in the company but 99.87% of the share capital was held by the holding company which was wholly owned by the taxpayer and his wife. They sold various properties and bought replacement ones between March 2001 and October 2002. The new properties were also let to the company. The taxpayer claimed roll-over relief in respect of the transactions.
HMRC opened an enquiry into the taxpayer's return and referred to the Special Commissioners the question of whether the company was the taxpayer's personal company within the meaning of TCGA 1992 Sch 6 para 1(2). Para 1(2) states that 'personal company in relation to an individual means any company the voting rights in which are exercisable as to not less than 5% by that individual'.
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