THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS v JASPER ALEXANDER THIRLBY CONRAN & JC VISION LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2023] UKUT 00166 (TCC)
Upper Tribunal Tax and Chancery decision of Judge Swami Raghavan and Judge Jennifer Dean on 12 July 2023
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INCOME AND CORPORATION TAX – valuation of transfer of licensing agreement between group LLP to group company – taxpayer company’s appeal, based on intangibles relief under Schedule 29 FA 2002 in relation to £8.25m valuation of transfer, dismissed – FTT’s decision upheld that value for intangibles relief purposes of assets actually transferred was £1 (transfer did not include trademark needed to operate licensing agreement) – FTT decided in favour of individual taxpayer that £8.25m received by relevant individual was paid to him in his capacity as member of the vendor LLP and so not a distribution “in respect of shares” under s209(2)(b) ICTA 1988) - HMRC’s appeal against FTT decision allowed - FTT’s decision remade: the £8.25m payment was a distribution