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EIS capital gains exemption requires actual claim for income tax relief (Robert Ames)

EIS capital gains exemption requires actual claim for income tax relief (Robert Ames)
Published on: 28 June 2018
Published by: LexisPSL
  • EIS capital gains exemption requires actual claim for income tax relief (Robert Ames)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Income tax relief a precondition for CGT exemption
  • Rectifying construction
  • Flawed decision making
  • Case details

Article summary

Tax analysis: the Upper Tribunal (UT) has upheld the First-tier Tax Tribunal (FTT) decision that the exemption from capital gains tax (CGT) on the disposal of enterprise investment scheme (EIS) qualifying shares does require that a claim for income tax relief has been made (and not withdrawn), not simply that income tax relief would have been available. However, it also found that HMRC’s decision not to allow the taxpayer Mr Ames to make a late claim for income tax relief was flawed in a judicial review sense and remitted the decision for remaking to HMRC. or take a trial to read the full analysis.

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