As explained at ¶226-510ff., new statutory principles were enacted in 2008 to govern the tax treatment of certain stock transactions. The intention of the 2008 legislation is to put on a statutory footing the long-established principles that were established in Sharkey (HMIT) v Wernher (1955) 36 TC 275. The statutory provisions have effect in relation to transfers of stock that occur from 12 March 2008.

The Sharkey v Wernher case remains of historic interest, and may still be of direct relevance to transactions before 12 March 2008. It is also relevant in that it clearly and explicitly provides the basis for the principles enacted in the Finance Act 2008.

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