Watton (HM Inspector of Taxes) v Tippett
Watton (HM Inspector of Taxes) v Tippett
- 1998
- Tax Cases [1998] TC 491-509(19) .
CA 22 May 1997. T purchased property and spent money on improving it. Later he partitioned the property into two, and in 1989 sold part at a profit. T successfully appealed against an assessment to capital gains tax in respect of that part disposal, claiming roll-over relief under Capital Gains Tax Act 1979 s 115, on the basis that the gains arising on that part disposal should be set off against the residue of expenditure attributable to the retained part of the premises. The Crown successfully appealed on the grounds that roll-over relief was not available, as a part disposal of an asset is to be treated as a disposal of the asset and, it could not be said that any quantifiable part of those proceeds had been `applied` in the acquisiton of the retained part. T`s appeal to the CA was dismissed on the basis that there must be an acquisition of assets other than the assets disposed of.
CAMPBELL CONNELLY V BARNETT
CAPITAL GAINS TAX ACT 1979 S115
ENHANCEMENT EXPENDITURE
NEW ASSETS
OLD ASSETS
PART DISPOSAL
ROLL OVER RELIEF
CA 22 May 1997. T purchased property and spent money on improving it. Later he partitioned the property into two, and in 1989 sold part at a profit. T successfully appealed against an assessment to capital gains tax in respect of that part disposal, claiming roll-over relief under Capital Gains Tax Act 1979 s 115, on the basis that the gains arising on that part disposal should be set off against the residue of expenditure attributable to the retained part of the premises. The Crown successfully appealed on the grounds that roll-over relief was not available, as a part disposal of an asset is to be treated as a disposal of the asset and, it could not be said that any quantifiable part of those proceeds had been `applied` in the acquisiton of the retained part. T`s appeal to the CA was dismissed on the basis that there must be an acquisition of assets other than the assets disposed of.
CAMPBELL CONNELLY V BARNETT
CAPITAL GAINS TAX ACT 1979 S115
ENHANCEMENT EXPENDITURE
NEW ASSETS
OLD ASSETS
PART DISPOSAL
ROLL OVER RELIEF