The Special Commissioners held on 7 February 2007 in The Trustees of the FD Fenton Will Trusts v HMRC [2007] UKSPC SPC00589 that a contribution to the capital of a Delaware company by its UK resident sole shareholder was not deductible expenditure for capital gains purposes.
The case concerned an investment by UK resident trustees in a company incorporated in the US state of Delaware. The entire share capital of the Delaware company consisted of no par value…