Putney Power Ltd and another v HMRC

In Putney Power Ltd and another v HMRC [2024] UKFTT 870 (TC) (26 September) the FTT dismissed appeals against HMRC’s decisions that the shares issued by each of the companies were not eligible shares for the purposes of the Enterprise Investment Scheme (EIS) ruling that the companies had not begun to carry on a qualifying trade within the required time limit in ITA 2007 s 179. 

The two companies were formed by the same investment manager to construct and operate power stations using funds raised under the EIS. Both companies issued shares on 4 April 2016 and applied to HMRC to issue EIS compliance certificates. In 2020 HMRC issued decisions that EIS relief was not due. This was on the basis that neither company had begun trading by the deadline in the EIS legislation in this case 4 April 2018....