.png)
.png)
Trading or not?
Key points
- The First-tier Tribunal upholds a claim to capital gains tax entrepreneurs’ relief.
- The company was liquidated five years after it issued its final invoice.
- Was there some confusion by HMRC as to the company’s activities?
- The 2008 financial crash made trading conditions difficult for a business reliant on bank credit.
- Personal misfortunes also prevented some activity being undertaken.
- Did the purchase of investment bonds mean that there was substantial non-trading activity?
- The need to stand back and consider the company’s activities in the round.
The August 2019 decision of the First-tier Tribunal in J and N Potter (TC7348) is interesting for two reasons. First the tribunal found that the Potters’ family company should continue to be regarded as a trading company for some years after its final sales invoice was issued. This was the key conclusion reached in the case enabling Mr and Mrs Potter to succeed in...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
