In A Rialas v HMRC [2019] UKFTT 520 (7 August 2019) the FTT allowed the taxpayer’s appeal finding that the transfer of assets abroad (TOAA) provisions (ICTA 1988 s 739 et seq.) did not apply and infringed the principle of free movement of capital in any event.
During the relevant years Mr Rialas was resident and ordinarily resident but not domiciled in the UK. He was the co-founder of Argo which carried on business as an investment adviser and owned 50% of the issued share capital of the company. The other 50% was held by Mr Cressman.
In order to facilitate the buy-out of Mr Cressman by Mr Rialas a shelf company (Farkland) was incorporated in the BVI and transferred to Rialco Mr Rialas’s family trust which was governed by Cyprus law. Mr Cressman then transferred his entire holding to Farkland...
