HMRC’s wrong determination against entrepreneur’s relief in the Chris Thomson case

Every now and then a tax case decision comes along which looks fairly innocuous until you start looking into it in more detail. Such a case is that of Christopher Thomson (TC8337). I should note a prior interest in this case which started when I responded to a Readers’ Forum question number 19520 in Taxation 19 March 2020 page 25 (tinyurl.com/timelydisposals).

Subsequently the taxpayer concerned Chris Thomson contacted me and I was pleased to be able to give him some assistance in preparing his case for the First-tier Tribunal hearing.

Facts

Chris was a partner in Voisey & Co in Warrington. He had a 99.9% share with 0.1% owned by Philip Urmston. Chris wanted to retire while also securing the continuity of the business so he agreed with Philip and another accountant in the practice Lee Warburton...