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A garage business (HG) traded at a large premises. A property company (E) wished to buy the site for residential development but not the business.
On 13 January 1995 HG transferred its trade to its subsidiary HY with HG continuing to trade as the undisclosed agent of HY. Later that morning E purchased HG's entire share capital B (the appellant) bought all the shares in HY and B took over the trade.
The appellant claimed relief under TA 1988 s 343 on trading losses incurred by HG on the transfer of the trade from HY to it. HMRC rejected the claim saying that HY had never carried on the trade in question.
The Special Commissioner said that ownership of the trade could not constitute carrying on the trade for the purposes of s 343. No evidence existed that the agency arrangement existed....
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