The taxpayer Mr Smallwood settled shares in two companies for the benefit of himself and his family. He also had the power to appoint trustees and was a beneficiary of the trust.
The shares increased in value and it was decided to sell them. Under a scheme devised to mitigate exposure to UK capital gains tax a Mauritian trustee was appointed.
The shareholdings were then sold. Shortly afterwards the Mauritian trustee resigned and Mr Smallwood and his wife both resident in the UK became trustees. All this was completed in the tax year ended 5 April 2001
The relevant tax returns were submitted and HMRC assessed the taxpayers to capital gains tax on the share sale. The taxpayers appealed.
The Special Commissioners dismissed their appeal but the High Court subsequently found for the taxpayers so...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.