Cases Flashcards
1
Q
What does the case of Zim properties show?
A
- That an indemnity from seller to target is a chose in action, and as such is taxable as a chargeable gain. At completion asset will be valued at £0, but at use it will be valued on basis of proved value. This value will then be taxed.
- To make more tax efficient give indemnity from seller to buyer (rather than target) as this means that the indemnity will be treated as a subsequent adjustment to consideration, and therefore s49 will mean tax reduced on initial sale price.
2
Q
New Hearts
A
Reference to a source of information in which the disclosed information is, is not adequate disclosure.
3
Q
Infiniteland
A
- Parties are free to set their own standard of disclosure.
- If parties contract that can sue even if buyer has knowledge then this is possible.
4
Q
Marren v Ingles
A
Deferred uncertain consideration is taxed as a chose in action. (earnout)
