HMRC v Sir AF Morrison (and cross-appeal)

In HMRC v Sir AF Morrison (and cross-appeal) (aka B Nevis v HMRC) (Upper Tribunal – 21 October) a public company (G) had acquired the share capital of another public company (P) in 2000. P’s chairman (M) had owned a substantial shareholding in P and following the takeover he received consideration valued at more than £33m. In 2002 M transferred much of this consideration (shares and loan notes) into a trust giving rise to a CGT liability. Meanwhile G had formed the opinion that a profit forecast which M had provided during the takeover negotiations had been misleading. G began court proceedings against M alleging fraudulent misrepresentation and seeking damages of £132m. In 2006 M and G agreed an out-of-court settlement under which M paid G £12m plus legal costs of...