Malcolm Finney examines the need for supporting documentation.
For a capital gains tax (CGT) charge to arise requires a disposal of assets (TCGA 1992, s 1). However, a disposal to a bare trustee or a nominee who holds the beneficial interest in the asset for the original transferor does not give rise to a disposal subject to CGT (TCGA 1992, ss 60 and 68); in essence, there is no transfer of any beneficial interest.
This is what was argued in Bhikhi v HMRC [2020] UKFTT 243 (TC).
Facts of the Bhikhi case
Bhikhi v HMRC was a case about a potential CGT charge arising on the transfer of a property to a related party, MIS Business Solutions Limited (MIS) for consideration of £499,000, which was carried out in order to
