Upper Tribunal decides gilt strips appeal
The Upper Tribunal has handed down judgment in an appeal concerning a claim for relief on losses said to arise on the sale of gilt strips.
The Upper Tribunal determined that the taxpayer had not sustained a loss, other than a small loss, in circumstances where he acquired gilt strips, granted a call option over the strips to a trust of which he was life tenant, and sold the gilt strips to an investment bank, which had already acquired the benefit of the option from the trustees of the trust.
The Upper Tribunal held that for the purposes of paragraph 14A, Schedule 13, Finance Act 1996, the taxpayer's loss had to be calculated by deducting from the acquisition cost of the gilt strips, both (i) the cost to the bank of acquiring the gilt strips from the taxpayer, and (ii) the cost to the bank of acquiring the benefit of the option from the trustees. The taxpayer had contended that only (i) should be deducted from the acquisition cost in calculating his claimed loss.
Aparna Nathan KC and Colm Kelly represented the Appellant taxpayer. Joshua Carey represented HMRC, led by Jonathan Davey KC.
The judgment can be found here.
Back to News
