Archive for March, 2014

A highly successful entrepreneur who incurred a Capital Gains Tax (CGT) liability in excess of £760,000 on the sale of shares in his company has failed to convince the Court of Appeal that an accountancy firm gave him negligent advice. The Iranian-born businessman had established a thriving clothing company after settling in Britain in the 1970s. He had eventually sold his shares in the company for more than £8.5 million, on which CGT of £763,658 was charged. He successfully argued before the High Court that he was potentially entitled to non-domiciled status and thus could have taken advantage of an avoidance scheme which would have extinguished his exposure to CGT. The accountancy firm was found to have been negligent in failing to advise him to seek specialist tax advice. In allowing the firm’s appeal against that decision, the Court found that it ... Read more