Edward Reed and Klara Kronbergs (Macfarlanes) review recent cases concerning entrepreneurs’ relief, PPR and SDLT.
Entrepreneurs’ relief: expect close scrutiny
Three recent cases concerning entrepreneurs’ relief (now known as business asset disposal relief) indicate that HMRC is showing particular interest in such claims currently. To recap the relief works by applying a capital gains tax rate of 10% to qualifying gains made by an individual (or trustee) up to a lifetime limit of £10m (now £1m) for pre-11 March 2020 disposals provided certain criteria are met.
One limb of the relief attaches to disposals of shares in a personal trading company and in Stolkin and others v HMRC [2024] UKFTT 160 (TC) the familiar theme of whether the relevant company was ‘trading’ was at the heart of the case. The company had acquired a valuable plot of land as an investment asset but then...
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Edward Reed and Klara Kronbergs (Macfarlanes) review recent cases concerning entrepreneurs’ relief, PPR and SDLT.
Entrepreneurs’ relief: expect close scrutiny
Three recent cases concerning entrepreneurs’ relief (now known as business asset disposal relief) indicate that HMRC is showing particular interest in such claims currently. To recap the relief works by applying a capital gains tax rate of 10% to qualifying gains made by an individual (or trustee) up to a lifetime limit of £10m (now £1m) for pre-11 March 2020 disposals provided certain criteria are met.
One limb of the relief attaches to disposals of shares in a personal trading company and in Stolkin and others v HMRC [2024] UKFTT 160 (TC) the familiar theme of whether the relevant company was ‘trading’ was at the heart of the case. The company had acquired a valuable plot of land as an investment asset but then...
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:
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