Special Commissioners: March 2007 Archives
I have been reading an interesting case that was recently referred to the Special Commissioner.
A trade was carried on by a company (which we shall call 2SPD), which had issued share capital of 60,000 ordinary shares of 1p each. Of that number, 59,932 (ie 99.87%) were held by a holding company (BHP). Of the remaining 68 shares, the taxpayer and his wife held 53, and the balance was held by a third party.
All of the shares in BHP were held by the taxpayer and his wife, the taxpayer holding a little over 50 per cent.The taxpayer claimed that his wife exercised her voting rights in accordance with his wishes, as he was in charge of running the business.
The taxpayer and his wife owned some farms and feed mills which they rented to 2SPD at normal commercial rates. They sold the assets and wished to claim rollover relief in respect of replacement assets.
A trade was carried on by a company (which we shall call 2SPD), which had issued share capital of 60,000 ordinary shares of 1p each. Of that number, 59,932 (ie 99.87%) were held by a holding company (BHP). Of the remaining 68 shares, the taxpayer and his wife held 53, and the balance was held by a third party.
All of the shares in BHP were held by the taxpayer and his wife, the taxpayer holding a little over 50 per cent.The taxpayer claimed that his wife exercised her voting rights in accordance with his wishes, as he was in charge of running the business.
The taxpayer and his wife owned some farms and feed mills which they rented to 2SPD at normal commercial rates. They sold the assets and wished to claim rollover relief in respect of replacement assets.
Continue reading Rollover relief - shares in a personal company.
