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Issue:
4900
/
Categories:
Comment & Analysis
, business asset disposal relief (BADR)
, TA 1988
, transfer of assets
, Business
As you were
Key points
- The Upper Tribunal has overturned the First-tier Tribunal’s decision in Jasper Conran.
- HMRC argued that the payment for the assets must have been a distribution because value had passed to Mr Conran.
- A clause in the agreement showed that Mr Conran was willing to protect shareholder value.
- The statutory test of ‘in respect of shares’ has meaning and must be applied.
A taxpayer who received £8.25m from a company that he indirectly controlled and on which he paid no tax has had his position reversed by the Upper Tribunal. This important and interesting decision on the meaning of distribution was handed down by the Upper Tribunal in CRC v Jasper Alexander Thirlby Conran [2023] UKUT 00166 (TCC).
The outcome a victory for HMRC on all grounds achieves what most practitioners must have expected to be the common-sense answer. The orthodox view is restored: where a shareholder...
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