Capital Gains

DMWSHNZ v CRC, Upper Tribunal (Tax and Chancery Division)

H Mehjoo v Harben Baker (a firm) and Harben Baker Ltd, Court of Appeal

A brother and sister own a property they inherited 20 years ago. It has been used by family members and more recently has been let out. To benefit her brother, the sister has suggested she could purchase his interest in the property

A woman wishes to buy a property in Florida. She and her husband are 50:50 shareholders of a limited company through which she carries on her trading business. The company is cash rich, so the client is considering a joint purchase of the property

The shares of a trading company are owned by three individuals. One of them wishes to leave. The suggestion is that a new company is formed that will purchase the trade of the existing one and then equalise the remaining shareholdings

A cafe owner wishes to sell his business, which is operated by his limited company. As director, he is still owed £18,000 from monies previously loaned to the company

A will trust owns and operates the business of a school. The trustees wish to form a limited company, of which the trust will be the sole shareholder, to which the school assets and liabilities will be transferred. Questions of entitlement to incorporation and entrepreneurs’ relief are examined.

A taxpayer has moved from his main residence to another property and wishes to let his father occupy the old house for the foreseeable future

Problems to avoid if you want to claim entrepreneurs’ relief

Partnership taxation deserves a firm and clear statutory basis

A client has become very wealthy over many years, but now has little income that is subject to tax. He wishes to make substantial gifts to charity, but is concerned that gift aid will not be of benefit

Phased completion can affect other shareholders’ relief