Who is a qualifying person?

A married couple and a company S were the owners of Hoardweel Farm. There was no formal partnership between the parties. Annual investment allowances of £16 027 were shown in the farm accounts to 31 July 2008.

With reference to CAA 2001 s 38A HMRC disallowed the claim on the basis the farm was not a qualifying person because not all the partners were individuals: one was a limited company.

The taxpayer appealed on the basis S was a not a partner in the farm partnership because it did not trade.

The First-tier Tribunal did not agree the company could be treated as a separate entity with no interest in the farm. It may have been effectively dormant for some years but it was required to make tax returns when it received taxable income or gains.

Furthermore the accounts did not show the married...