Entrepreneurs’ relief is not available

The taxpayer owned ADL a property investment and development business and AML which carried out industrial and marine engineering activities. The shares in AML were transferred to a new holding company Allamhouse Ltd. The taxpayer sold all of the shares in ADL to AML and claimed entrepreneurs’ relief which HMRC denied. This led to three appeals.

First the taxpayer challenged HMRC’s decision that he was not entitled to entrepreneurs’ relief. The First-tier Tribunal dismissed this appeal.

Second he appealed against HMRC’s assertion that he was liable to income tax on income and gains remitted to the UK on the withdrawal of business investment relief. The First-tier Tribunal dismissed this also.

Finally the taxpayer challenged a counteraction notice under the transaction in securities provisions in connection with the same disposal of shares in ADL. This was allowed by the First-tier Tribunal.

The...