Kevin Read looks at a recent case where the appellant had misunderstood all the tax issues involved.
I am always amazed by the number of people who undertake high value transactions without getting proper advice about the tax consequences.
A classic example arose recently in Arshad Mahmood v Revenue and Customs [2024] UKFTT 114 (TC).
The key facts
Arshad Mahmood [M] transferred ten commercial properties to a company owned by his wife. The disposal, in November 2016, was not reported on his 2016/17 tax return as he believed that:
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the spousal CGT ‘exemption’ applied; and (anyway)
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no gain arose, as the properties were transferred for consideration equal to their CGT base cost (£300,000).
In early 2019 (while an HMRC enquiry was ongoing), M
