Iny v Revenue & Customs

CAPITAL GAINS TAX � value of shares in private limited company � shares disposed of in 1994 � stated consideration of �20,000 � whether arm�s length sale � no �tax to be based on market value of shares � TCGA 1992 ss 17, 272 �identification of market value

Sitting in public in London on 20 to 22, 26 and 27 January 2010, with written submissions concluding on 5 May 2010

Michael Gibbon, counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs for the Respondents

We interpose that Mr Michael Gibbon, who appeared for the Commissioners, made much of the parties� change of position during the period before the appeal came on for hearing The Commissioners had initially relied on s 18, while at a late stage Mr Iny raised a separate argument, that the disposal was a sale at arm�s length. In his closing submissions, Mr Gibbon asked us to determine the appeal, against Mr Iny, by reference to s 17 and suggested that only if we found ourselves unable to do should we go on to consider ss 286 and thereafter s 18. We shall return to this point later.

One is left to assume that Mr Iny continued to negotiate agreements�with the London Borough of Brent and the Department of Health�partly in the hope that the market would recover, though he had, by 1993, another project in mind, in which those negotiations and the agreements to which they led became of some importance.