KS Macmillan and another v HMRC

In KS Macmillan and another v HMRC [2019] UKFTT 624 (16 October 2019) the FTT ordered that costs be shared equally between the appellant and HMRC.

This was a decision on costs and the substantive issue was whether entrepreneurs’ relief from CGT was available on a disposal of loan notes by the taxpayers in 2014. These loan notes had been issued to them in 2006 as the result of a pre-planned series of transactions which had started with the disposal of the taxpayers' shares in ‘Company 1’ in return inter alia for the issue of loan notes in  ‘Company 2’ and so on until a final exchange for loan notes and shares in ‘Company 5’.

The issue of the substantive appeal as articulated by the parties was: ‘whether the taxpayers were issued with [loan notes in Company 5] in exchange for ... the shares in [Company...