Capital Gains

The capital gains tax only or main residence exemption generally applies to only one residence. Advice is requested on the eligibility of a UK residence when married forces personnel and their families are living in married quarters in the UK or abroad. Does a formal election need to be made?

S and L McCaughern (TC2700)

How to obtain entrepreneur’s relief on liquidation

Three brothers own the shares in a trading company which trades from premises owned personally. They wish to dispose of the property and plan to each gift a 5% shareholding to their wife to enable the sale to be treated as an associated disposal

Shortly before the self-assessment tax return filing deadline, a client gave notification that a land transaction had taken place. A form CG34 was submitted, but HMRC are refusing to carry out a post-transaction valuation check

A payment may be made by the transferor of an asset to persuade the transferee to assume ownership. Does the decision in Aberdeen Construction Group Ltd mean it is possible for an acquisition cost to be a negative figure?

Ramsay v CRC, Upper Tribunal (Tax and Chancery Chamber)

An entrepreneurial client has built up an unquoted company. He now owns 100% of the share capital, having acquired other holdings from elderly relatives. Those transfers were subject to holdover elections, but if shares are transferred to his wife, will a gain crystalise?

D Morgan (TC2596)

A client carried on a business through a “one-man” limited company, which has ceased trading but has retained profits. Because he is liable to higher rate tax in retirement, he proposes to gift the shares to his wife to enable her to draw dividends

The shares in a trading company are owned by an interest in possession trust, which was established to take advantage of retirement relief. Holdover relief will be available on a gift of shares from the trust to the shareholder’s son

Confusion as to the capital gains tax reliefs available often arises when a taxpayer has two residences