Q&A : Demetriou v CRC

The First-tier Tribunal (FTT) decision in Demetriou and another (TC9288) held that a fisheries business run by the late Mrs Pearce following the earlier death of her husband was in the round an ‘exploitation of land to produce income’ and thus an investment activity not eligible for business property relief (BPR).

What did the case consider?

The case concerned whether the business was eligible for relief as a trade or was one that consisted mainly of holding investments. This ‘brightline’ between trading and investment is currently a big question for tax advisers and one that tax and accounting bodies are asking for more guidance on. The problem in this instance was that the income of rod fees was essentially recreational use of the river as opposed to say the sale of fish where people could take home their catch.

During the time that Mrs Pearce ran...