FTT HAS NO JURISDICTION OVER CONTRACTUAL SETTLEMENT

摘要

In the case of Morris & Anor v Revenue & Customs [2014] UKFTT993 (TC), Mrs Morris and Mrs Gregson (the appellants) inherited a farm from their deceased brother which was valued at £650,000 on 28 January 2005 (the date of the brother's death). The farm was sold for £800,000 in March 2006.The appellants' solicitors became concerned that the disposal of the farm had been treated incorrectly for capital gains tax (CGT) purposes. In particular, that a capital gain possibly arose from the fact that the disposal proceeds were £800,000 but the base cost was £650,000. On 25 July 2009, Gregson, on the advice of her accountants, submitted an estate return making a claim to capital losses of some £18,000. This was on the basis of a claim under Inheritance Tax Act 1984, s191, that the sale proceeds be substituted for the probate value at the date of death. HMRC rejected the claim on capital losses.