UT (Tax & Chancery) UT-2023-000031 - [2024] UKUT 00168 (TCC)

UT (Tax & Chancery) Case Number: UT-2023-000031

TAX AVOIDANCE – INCOME TAX – loss determination on disposal of gilt strips – paragraph 14A Schedule 13 Finance Act 1996 – grant of option to trustee followed by assignment of option to a third party purchaser – payments made by purchaser to trustee for assignment of option to purchase and to taxpayer for exercise of the option - whether the FTT erred in including the amount paid by the purchaser to the trustee as a person other than the transferor as part of the ‘amount payable on the transfer’ under para 14A(3)(b) – appeal dismissed

Hearing venue: The Rolls Building

London EC4A 1NL

Heard on: 12-13 March 2024

Judgment on 12 June 2024

Before

JUDGE RUPERT JONES

JUDGE ASHLEY GREENBANK

Between

TIMOTHY WATTS

Appellant

and

THE COMMISSIONERS FOR HIS MAJESTY’S

REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellant: Aparna Nathan KC and Colm Kelly, Counsel, instructed by Anthony Collins solicitors

For the Respondent: Jonathan Davey KC and Joshua Carey, Counsel, instructed by the General Counsel and Solicitor for His Majesty’s Revenue and Customs

DECISION