Capital gains tax

The Court of Appeal in dismissing the appellant taxpayer’s appeal, held that he could not, in computing the gain accruing to him on the disposal of shares, bring into account, by way of deduction, expenditure incurred by him in buying his release from a personal contractual obligation to a third party restrictive of his ability to vote or sell those shares. Accordingly, s 38(1)(b) of the Taxation of Capital Gains Act 1992 had not applied to the present facts.