In S Fisher and others v HMRC [2020] UKUT 62 (TCC) (4 March) the UT held that the transfer of company’s business was not subject to transfer of assets abroad rules. The provisions expressly required the transfer of assets to be made by an individual.
In 2000 SJA Ltd a UK-resident company which traded as a bookmaker transferred its telebetting business to SJG Ltd a company resident in Gibraltar. The entire shareholding in both companies was held by Mr and Mrs Fisher and their two children but none of them individually had a controlling interest in either company. HMRC assessed each of Mr and Mrs Fisher and their son Peter to income tax on an apportioned allocation of SJG Ltd’s profits for 2000/01 to 2007/08 under the transfer of assets abroad provisions (now ITA 2007 s 720).
The FTT had dismissed the taxpayers’ appeals...
