Lessons on entrepreneurs’ relief claims

The decision of the First-tier Tribunal in Dr Allam (TC7532) covered several tax aspects. First procedural matters concerning the opening of HMRC’s enquiry into the taxpayer’s return were explored. Second there was an appeal against a counteraction notice issued by HMRC under ITA 2007 s 698 – the so-called transactions in securities legislation – which was allowed. Third an appeal was heard on the application of the business investment relief under ITA 2007 s 809VA which deals with provisions on investments by non-UK domiciled individuals and the treatment of some remittances. However my focus is solely on the aspects relating to capital gains tax entrepreneurs’ relief.

Although the position on the taxpayer’s claim to this relief can be summed up by saying that the tribunal found HMRC to have been right to reject the claim...