36 Queen Street, London, EC4R 1BN | +44 (0)20 7242 2642
Spectros International plc v. Madden (Inspector of Taxes) [1997] STC 114 (Ch D)

Capital gains tax. Disposal consideration. Purchaser of company agrees to discharge debt.Spectros disposed of the common stock in its subsidiary SIH. The agreed purchase price was $20,001,000, but at the time of purchase SIH had a liability of $20 million to a bank; the money borrowed had previously been paid to Spectros by SIH in the form of a dividend. The purchaser agreed to discharge the liability to the bank, and in the event only paid $1,000 for the common stock. On the facts in this case, the effect of the sale agreement and related agreements was that the disposal price of the common stock was indeed $20,001,000.David Goldberg KC and Hugh McKay appeared for the taxpayer

Latest news:

Gray’s Inn Tax Chambers is deeply saddened to learn of the death of Her Majesty Queen Elizabeth II.
We join the nation in mourning and our condolences are with the Royal Family.
09 Sep 2022
Gray’s Inn Tax Chambers has been nominated in the Chambers UK Bar Awards 2022
Gray’s Inn Tax Chambers are delighted to have been have been nominated for Tax Set of the Year.
31 Aug 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.
Read review