Tax - CGT

Callaghan - creates equity. charged on realisation absis lock in affect

...when chargeable PERSON makes chargeable DISPOSAL of an ASSET

gain - (exemptions/reliefs) - losses

Resident in UK/ Ordinarily resident

Trustees, personal respresentatives (potentially gains by deceased)

any form of property other than £

An employer's rights under service contract = asset

Compamu acquired services of Director an acquisiation

Director paid £50000 to be released

CGT: non-assignmable; no market value -> still disposal of asset = rights
Section 22(2)c: capital sums for surrender of rights

Thorn's subsidiary MI etnered into agreement --> shares to GE

For 575000 covenant that THorn would not touch company

Covenant argued not a disposal of asset

Goodwill an asset; case established sec 22(3)

s 21(2): part disposal or full disposal

s 22: where any cpital sum is derived from assets

Property damaged, rights under insurance policy assinged -> consideration for rights not derived from property damaged

taxpayer held building in trust

effected policies in insurance

buildings destroyed by fire

compensation 75000

gain did not accrue in assingment of rights

ss22(3) confined to cases where no asset is acquired by person paying capital sum (e.g. KIRBY)

taxpayers sold shares in private company w/provision for payment of a further amt. based on market price following flotation

Deffered consideration payed later

RIght to deffered consideration asset; on receipt of consideration there was a disposal (ss22(3))

RIght to payment not a debt, exemption DNA

T and mother owned interest in property in Latvia

USSR seized propeorty

COmpensation alotted by statutory means

T entitles to mother's estate and compensation

TAxabale under s 22 for both estate and property derived funds

T's lease terminated, received compensation

COmpensation arose from Landlord and Tenant Act - therefore not property derived

T Co. propeorty investment company, sold propoerty, purchaser claimed bad title

T sued solicitor for negligence

Case settled of out of court for 69000

Cause of action was an assert for CGT (see O'Brien)

Special cases: gifts, bargains not at arm's length - Doner eemed to have received market value

AC brought hsare capital in RF and made unsecured laons to RF

AC entered contract with purchaser to the shares who agreed to purchase share capital if AC waives RF loan

Sum needs apportionment for CGT as not all due to share capital

Disposal of debt does not equal allowable loss as it was not a debt on a security

Costs encurred by executors in making an inventory of a deceased's assets w/ view to obtaining information against chargeable gains accuring on disposal of assets

Indexes disposal to inflation - for companies only

Land and exemption for only or main residence s 222 - 226

Taxpayer bought residence, lived in it for 10 days

DIsmissed, not exempt as no permanence

Dwelling house and grounds

- Taxapyer sold cottage on grounds

- Not appartuent, therefore liable for CGT

Flats around square even if used by same family member, do not consitute a residence

s 62