P Cox and another v HMRC

In P Cox and another v HMRC [2024] UKFTT 510 (TC) (3 June) the First-tier Tribunal (FTT) dismissed the taxpayers’ appeals against penalties arising from invalid claims to entrepreneurs’ relief (now business asset disposal relief). The FTT held that in making the claims the taxpayers had failed to take reasonable care and that HMRC’s decision not to suspend the penalties was not flawed. 

The taxpayers a married couple were directors and minority shareholders of a company which traded as financial advisers. Each held approximately 6% of the shares. In 2018 some of the shareholders including the taxpayers decided to sell their shares to other continuing shareholders. At a meeting between the directors and a representative of the solicitors acting in respect of the sale EWM the representative went ‘round the table’ to confirm that each director...