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The taxpayer and his two brothers inherited farmland from their mother in 1993 and farmed it in partnership.
The three brothers sold one third of the land in January 2009 and the taxpayer claimed entrepreneurs’ relief in respect of his share of the disposal.
He explained that the land had been sold for development; the farm partnership’s profits had reduced as a result of the sale because there was less land to farm. As such the sale represented a material disposal of a business asset.
HMRC refused the claim saying the disposal was a part disposal of an asset rather than that of part of the business. The taxpayer appealed.
Referring to the decisions in McGregor v Adcock [1977] STC 206 and Barrett v Powell [1998] STC 283 the First-tier Tribunal noted that disposal had to be one of part or all the business (TCGA...
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