The taxpayer operated a used car sales business, selling ‘sporty’ cars. He experienced problems with vandalism at the business premises, and decided to sell those premises. The sale eventually took place on 29 April 2008.
The taxpayer claimed that he ceased trading from the premises in May 2005. He subsequently started selling used four-wheel drive and family vehicles from a site adjoining his home, but was unable to do so until 29 September 2006, when planning permission was given. The restrictions imposed by the planning authorities meant that the taxpayer was prohibited from displaying vehicles for sale to the general public at the new premises. He therefore had to conduct his business by advertising on the internet.
HMRC denied a claim for entrepreneurs’ relief on the disposal of the business carried on from the previous premises. The taxpayer appealed.
HMRC contended
