Print Page
News & Press: Capital Gains Tax

Substance over form: A UK judgment about the avoidance of capital gains tax

Friday, 24 May 2019   (0 Comments)
Posted by: Authors: Louis Botha and Tsanga Mukumba
Share |

Authors: Louis Botha and Tsanga Mukumba (Cliffe Dekker Hofmeyr)

In the United Kingdom, capital gains tax (CGT) under the Taxation of Chargeable Gains Act, 1992 (TCGA) is charged, inter alia, where a taxpayer disposes of an asset for an amount greater than the base cost at which such taxpayer initially purchased the asset.

The TCGA contains several types of anti-avoidance provisions where a transaction is not conducted on an arm’s length basis, including rules that deem such a disposal to be at market value and set a time of disposal where connected parties seek to arrange their affairs to defer a CGT liability.

In Trustees of the Morrison 2002 Maintenance Trust and Others v Revenue and Customs Commissioners [2019] EWCA Civ, the Court of Appeal, Civil Division, had to decide whether the taxpayers were liable for CGT, where they disposed of shares in a manner that was perceived to be done with the intention of avoiding a CGT liability.

Please click here to read more.

This article first appeared on cliffedekkerhofmeyr.com.


 

WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal