Loss claim: whether loan stock was a relevant discounted security
In N Pike v HMRC (Upper Tribunal – 14 May) an individual (P) purchased a newly-incorporated company on 28 March 2000. On 31 March 2000 he paid £6 000 000 for loan stock in the company. On 5 April 2000 he transferred the loan stock to a newly-created trust of which he and his wife were trustees. He subsequently submitted a tax return claiming that he had made a loss of more than £3 400 000 on a relevant discounted security. HMRC rejected the claim and P appealed contending that the loan stock had had a market value of £2 600 000 when he transferred it to the trust. The First-tier Tribunal (FTT) dismissed his appeal finding that ‘the transactions at issue in this appeal were part of a scheme of tax avoidance’ and that P had...
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:
Loss claim: whether loan stock was a relevant discounted security
In N Pike v HMRC (Upper Tribunal – 14 May) an individual (P) purchased a newly-incorporated company on 28 March 2000. On 31 March 2000 he paid £6 000 000 for loan stock in the company. On 5 April 2000 he transferred the loan stock to a newly-created trust of which he and his wife were trustees. He subsequently submitted a tax return claiming that he had made a loss of more than £3 400 000 on a relevant discounted security. HMRC rejected the claim and P appealed contending that the loan stock had had a market value of £2 600 000 when he transferred it to the trust. The First-tier Tribunal (FTT) dismissed his appeal finding that ‘the transactions at issue in this appeal were part of a scheme of tax avoidance’ and that P had...
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:
