UT/2021/000157 - [2024] UKUT 00110 (TCC)

The appellant, Mr Tenconi, appeals against a decision of the First-tier Tribunal (Tax Chamber) (“FTT”) published as John Tenconi v HMRC [2021] UKFTT 107 (TC). Dismissing his appeal, the FTT upheld the closure notice HMRC had issued in the amount of £175,158.59 in respect of Mr Tenconi’s liability to capital gains tax (“CGT”). The FTT held that, when Mr Tenconi transferred his beneficial interest in certain distribution rights in a company (which it considered were assets under s21 Taxation of Capital Gains Act 1992 (“TCGA”)) in return for £1m, the transfer amounted to a disposal for CGT purposes.

In granting permission to appeal, the Upper Tribunal restricted Mr Tenconi’s ground of appeal to the following narrow issue. Was the FTT wrong to conclude that there was a disposal of the beneficial interest in the rights for CGT purposes despite the fact that the legal title to those rights was incapable of being transferred (there being no provision for their transfer under the company’s articles of association)?