Home Information Cases Netley v HMRC (2017)

Skip to content. | Skip to navigation

Netley v HMRC (2017)


In a lead case, the tribunal examined the basis and principles on which the market value of shares admitted to the Alternative Investment Market and gifted as "qualifying investments" to a charity under the Income and Corporation Taxes Act 1988 s.587B should be determined. The purpose of the valuation was to establish the correct amount of tax relief generated by the gift. The tribunal determined that the availability of gift relief had been incidental to the flotation of the relevant company, not its main purpose. It construed the Taxation of Chargeable Gains Act 1992 s.272and s.273, concluding that AIM shares were neither "quoted on the Stock Exchange Daily Official List" (SEDOL) nor "quoted on a recognised stock exchange". The price of the shares on SEDOL was not, therefore, a true measure of their market value. The proper valuation was the price which the hypothetical prudent purchaser would pay in the open market.



Appeal allowed in part

First-tier Tax Tribunal
Judge Jonathan Cannan
Judgment date
26 May 2017
SFTD 1044

Practice areas