Summary
The appellant’s transfer to a company in exchange for shares was a business, which was capable of being transferred, and was transferred as a going concern, such that capital gains tax incorporation relief was available.
Background
The appellant originally held 49 shares in the company (G). The other 51 of the 100 issued shares in G was held by another individual (B). In May 2006, the appellant made a transfer to G (valued at £523,363) in exchange for a further 49 shares (and at the same time B transferred a business into G in exchange for a further 51 shares).
In March 2011, HM Revenue and Customs (HMRC) raised a discovery assessment for 2006/07 in respect of capital gains tax on the appellant's transfer to G. The appellant appealed. He contended that capital gains tax incorporation relief (under TCGA 1992, s 162) was available in respect of the transfer. HMRC
