In Steven Price and others v HMRC [2015] UKUT 164 (17 April 2015) the UT found that a capital loss scheme failed under the Ramsay principle.
The taxpayers had participated in schemes designed to create capital losses. Their success was predicated on the participants having spent large sums on acquiring assets and having realised very small amounts on their disposal. This in turn depended on the disapplication of TCGA 1992 s 17 which deems a transaction between parties who are not dealing at arm’s length to be at market value. The FTT had found that the transactions had been at arm’s length so that s 17 was not in point; however the FTT had drastically reduced the acquisition price (TCGA 1992 s 38) and therefore the loss. This was the main issue of this appeal.
The FTT had found by way of example...
