Was a business carried on in partnership?

Mr R carried on a business as a freelance MOT tester. Previously he had operated from premises that he owned trading as both a MOT tester and mechanic. He sold the business but he and his wife (from whom he was later divorced) retained the premises. After a period of disuse the premises were used in a business of secure storage and workshop hire. The premises were sold and entrepreneurs’ relief was claimed on the disposal. HMRC refused the claim and the taxpayers appealed.

The tribunal considered that there were two possible routes to relief. The first was in relation to the freelance MOT trade. There was some minimal use of the premises to store the MOT equipment and to carry out limited activities but because the freelance MOT business continued after the premises were sold the conditions of TCGA 1992 s 169I(2)(b) –...