In WSG Russell v HMRC (TC02299 – 17 October) three brothers had inherited some farmland which they farmed in partnership. In 2009 they disposed of about 35% of the land but continued to farm the remainder. One of the brothers (R) claimed entrepreneurs’ relief in respect of his share of the gain on the disposal. HMRC rejected the claim on the basis that the disposal was the disposal of a business asset rather than the disposal of part of the partnership business. The First-tier Tribunal dismissed R’s appeal applying the principles laid down by Fox J in McGregor v Adcock [1977] STC 206 and by Lightman J in Barrett v Powell [1998] STC 283.
In WSG Russell v HMRC (TC02299 – 17 October) three brothers had inherited some farmland which they farmed in partnership. In 2009 they disposed of about 35% of the land but continued to farm the remainder. One of the brothers (R) claimed entrepreneurs’ relief in respect of his share of the gain on the disposal. HMRC rejected the claim on the basis that the disposal was the disposal of a business asset rather than the disposal of part of the partnership business. The First-tier Tribunal dismissed R’s appeal applying the principles laid down by Fox J in McGregor v Adcock [1977] STC 206 and by Lightman J in Barrett v Powell [1998] STC 283.
