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In M Group Holdings Limited v HMRC [2021] TC08054 , the Frist Tier Tribunal (FTT) dismissed an appeal against a closure notice denying Substantial Shareholding Exemption as a group had not existed for 12 months prior to the disposal.

The FTT dismissed the appeal finding that:

Comment

While this is only a FTT decision, this case does reinforce the view that retaining a dormant subsidiary in an otherwise standalone company is a sensible way to proceed if a sale of the company in the future is likely.

Useful guides on this topic

Substantial Shareholding Exemption
What is the Substantial Shareholding Exemption?  When does it apply?  

When the tax inspector calls
This section looks at policy on tax strategies/avoidance and tax investigation news, including serious fraud and disclosure facilities. From time to time we comment on any other topical HMRC activity.

Closure Notices
When does HMRC issue a Closure Notice? Can a taxpayer demand one? Are there appeal rights? 

Appeals
Disagree with a HMRC decision? How to appeal, what type of decision can you appeal, what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

Statutory Review
What is a Statutory Review? Is it automatic? What happens in a Statutory Review? Can you challenge a Statutory Review's findings? Can you influence a Statutory Review? 

External Links

M Group Holdings Limited v HMRC [2021] TC08054


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