In Ferguson v HMRC (TC03562 – 9 May 2014) Mr Ferguson wished to shelter £500 000 of his employment income from tax.
He implemented a scheme which relied on the ‘gifts to charities’ rules which allow individuals to deduct from their income for tax purposes the market value of any shares or similar assets they give to charities. The arrangements were intended to give rise to the relief under those rules while passing on 99% of the value of the assets (which were gilts) ‘given’ to the charity to a family trust for the benefit of Mr Ferguson and his family.
The key issue was therefore whether Mr Ferguson had disposed of the beneficial interest in the gilts to a charity.
HMRC contended firstly that to allow the relief would ignore the purposive approach of ICTA 1988 s 587B which...
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In Ferguson v HMRC (TC03562 – 9 May 2014) Mr Ferguson wished to shelter £500 000 of his employment income from tax.
He implemented a scheme which relied on the ‘gifts to charities’ rules which allow individuals to deduct from their income for tax purposes the market value of any shares or similar assets they give to charities. The arrangements were intended to give rise to the relief under those rules while passing on 99% of the value of the assets (which were gilts) ‘given’ to the charity to a family trust for the benefit of Mr Ferguson and his family.
The key issue was therefore whether Mr Ferguson had disposed of the beneficial interest in the gilts to a charity.
HMRC contended firstly that to allow the relief would ignore the purposive approach of ICTA 1988 s 587B which...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
