Weekly case highlights ― 28 October 2024

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.

Business tax

GCH v HMRC

This is an unusual case because it concerns an arrangement which was notified under DOTAS but which the tribunal has accepted was effective in avoiding a capital gains tax charge which would otherwise have arisen. It involved a group of shareholders selling shares in a public company in exchange for loan notes. Those loan notes were then contributed as capital to an LLP which was subsequently liquidated. The tax planning relied on the fact that the contribution of the loan notes by way of capital by the individuals would not trigger a capital gains charge provided that the LLP was trading or carrying on a business with a view to profit. However, the base cost of the loan notes

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