Summary
Gift holdover relief (under TCGA 1992, s 165) was precluded (under s 167(2)) on an individual’s gift of goodwill to a UK company, as control of the company was attributed to the transferor’s wife (among others) who were not resident or ordinarily resident in the UK.
Background
The appellant, a US citizen who was neither resident nor ordinarily resident in the UK, disposed of his interest (including goodwill) in a business carried on by a limited liability partnership (B), transferring it by way of a gift on 1 April 2010 to a new UK incorporated and resident company (W Ltd), of which he was the sole shareholder and director.
Although the appellant was not resident or ordinarily resident in the UK, his share of the goodwill of the business was a chargeable asset in relation to him for capital gains tax (CGT) purposes. A proposed
