Market leading insight for tax experts
View online issue

Harvey’s Jersey Cream Ltd v HMRC

EIS and partnership interests

In Harvey’s Jersey Cream Ltd v HMRC (TC03045 – 14 November 2013) the taxpayer company (‘Harvey’s) was appealing against a decision by HMRC to deny an enterprise investment scheme (EIS) claim. Harvey’s had raised monies by an issue of shares in order to increase its interest in a trading partnership in which it was co-partner. The monies had therefore been paid to the other partners. Under the EIS regime (TCGA 1992 Sch 5B) taxable gains can be set against amounts paid for shares in a ‘qualifying company’ for the purpose of a ‘qualifying business activity’. According to the tribunal this meant that the monies must be raised and employed for the ‘activities of the trade’.

The tribunal pointed out that under the Partnership Act 1890 s 5 the trade of a partnership is carried out by each partner. As the partnership...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top