This appeal concerned the interaction of s.17 (market value rule), s.28 (timing rule) and s.144(3) (single transaction rule on the exercise of options) Taxation of Chargeable Gains Act 1992. The taxpayer had been granted share options as a result of his employment outside the United Kingdom and had later exercised those options when he became United Kingdom resident. The issue was whether, as the Revenue said, the taxpayer’s base cost should be the market value of the option at the time of the grant plus the amount actually paid for the exercise of the option (which gave a lower base cost) or, as the taxpayer argued, the market value of the shares at the time that the option was granted. The Court of Appeal, upholding the High Court and Special Commissoners, said that the taxpayer’s arguments were correct.Tmothy Brennan KC and Hugh McKay appeared for the Appellant
Mansworth (HM Inspector of Taxes) v. Jelley – Court of Appeal
Latest news:
Gray’s Inn Tax Chambers is delighted to have been shortlisted for 4 separate awards at The Legal 500 Bar Awards 2023
19 Jul 2023
GITC is sad to report the death of our Head of Chambers, Mr Milton Grundy who passed away at the weekend.
Gray’s Inn Tax Chambers is deeply saddened by the passing of our founding member and Head of Chambers, Mr Milton Grundy
28 Nov 2022
GITC Review
The 2022 GITC Review is now available
If you would like to be added to the mailing list for future issues of the GITC Review, please send an email to Jane.Fullbrook@taxbar.com.