J Wardle v HMRC

In J Wardle v HMRC [2024] UKFTT 543 (TC) (19 June) the FTT allowed a claim to entrepreneurs’ relief (now business asset disposal relief) in respect of the disposal of the taxpayer’s interest in an LLP formed to construct and operate a biomass power plant. The LLP had been trading throughout the necessary two-year period.

The taxpayer owned 15% of the equity in a limited liability partnership set up in June 2015 as a special purpose vehicle to construct and operate the power plant in Hull. In August 2015 the LLP obtained an unsecured loan from a funder and entered into more than 50 contracts with various parties relating to construction operation and financing of the plant. In 2016 the LLP applied to the Environment Agency for a permit to operate the plant which was granted in May 2017. The commissioning of the plant was certified as complete...