Craig Kay v The Commissioners for HMRC
Decision date: 12 October 2023
Neutral citation: [2023] UKFTT 861 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned the market value on 2 April 2004 of 190,000 AIM-traded Access Intelligence plc shares gifted to charity, where the taxpayer had claimed relief based on 42.5p per share and HMRC assessed c.9.44p per share. The Tribunal accepted HMRC expert Clare Rooney’s valuation evidence, found the market value to be 9.42p per share, and dismissed the appeal, adjusting the claimed relief accordingly.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal treated thin AIM trading and very small traded volumes as making published AIM prices an unreliable indicator of open market value for uninfluential minority holdings; a hypothetical prudent purchaser is assumed to rely only on publicly available information, and valuation may properly be based on arm’s-length acquisition evidence and approaches such as net asset or revenue multiples where trading evidence is not reliable.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment notes (obiter) that confirmations from NOMADs and market makers may be relevant but are not conclusive without supporting evidence, and that “hope value” and short intervals between admission and a valuation can limit reliance on prospectus or early placing prices.