The Supreme Court dismissed an appeal by HMRC and upheld the Court of Appeal’s decision to quash a follower notice as HMRC had not satisfied the conditions to give the notice. 

Summary 

The Supreme Court dismissed an appeal by HM Revenue and Customs (HMRC) and upheld the Court of Appeal’s decision to quash a follower notice as HMRC had not satisfied the conditions to give the notice. 

Background 

In early 2000, a trust established by the taxpayer for himself and his family held shares in a company. A plan developed to merge the company with another company and to list shares in the new company on the London stock exchange.  

To avoid capital gains tax on disposal of the shares held by the trustees, a scheme was devised under which the existing Jersey trustees resigned in favour