Pete Miller (The Miller Partnership) examines a recent Upper Tribunal decision on a key test for business asset disposal relief.
One of the major areas of difficulty with business asset disposal relief and with its predecessor entrepreneurs’ relief has been the question of whether a company’s activities ‘include to a substantial extent activities other than trading activities’ (TCGA 1992 s 165A(3)). This is also relevant to the substantial shareholding exemption (TCGA 1992 Sch 7AC para 20(1)) and the exemption from CGT for disposals to an employee ownership trust (TCGA 1992 s 236I(2)).
Potter
The first case to consider this point was the First-tier Tribunal (FTT) decision in Potter [2019] UKFTT 554 (TC). Mr Potter’s company had virtually no trading income between 2008 and 2014 when the company was wound up. In that period Mr Potter put a lot of work into trying to generate new...
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Pete Miller (The Miller Partnership) examines a recent Upper Tribunal decision on a key test for business asset disposal relief.
One of the major areas of difficulty with business asset disposal relief and with its predecessor entrepreneurs’ relief has been the question of whether a company’s activities ‘include to a substantial extent activities other than trading activities’ (TCGA 1992 s 165A(3)). This is also relevant to the substantial shareholding exemption (TCGA 1992 Sch 7AC para 20(1)) and the exemption from CGT for disposals to an employee ownership trust (TCGA 1992 s 236I(2)).
Potter
The first case to consider this point was the First-tier Tribunal (FTT) decision in Potter [2019] UKFTT 554 (TC). Mr Potter’s company had virtually no trading income between 2008 and 2014 when the company was wound up. In that period Mr Potter put a lot of work into trying to generate new...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
