Who owns the shares?

CBF Capital Ltd was 100% owned by its directors: G Taylor (25 shares) H Taylor (25 shares) and the taxpayer (50 shares).

He declared only half of his dividend income from the company in his 2007/08 and 2008/09 tax returns in the belief he was joint beneficial shareholder with his wife who was company secretary.

HMRC assessed him to the tax on the entire shareholding. The taxpayer appealed.

The First-tier Tribunal noted the taxpayer had signed statutory financial statements for CBF for the year ended 31 March 2007 which showed he held 50 shares. No mention was made of the his wife.

The statements for the following year did not specify the shareholdings but said the directors owned all the shares. The wife had never been a director. The taxpayer said his signing of the statements was a careless mistake.

The tribunal concluded it may have...