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Robert Waterson and Adam Craggs (RPC) examine Sir Fraser Morrison and remaining questions over whether an out-of-court settlement payment may be deducted under TCGA 1992 s 49.

In this month’s briefing, Mark Middleditch (Allen & Overy) provides a round-up of recent tax developments affecting the City, including: the decisions in Sir Fraser Morrison (contingent CGT liability for shareholder-director) and Project Blue (SDLT anti-avoidance); new tax relief for corporate rescues; and the Office of Tax Simplification’s report on partnership taxation.

In the case of HMRC v Sir Alexander Fraser Morrison, the Upper Tribunal found that a payment made in settlement of a High Court action was not a contingent liability under TCGA 1992  s 49, thus overturning the decision of the First-tier Tribunal. Paul Howard examines what this would mean in similar situations.