Summary
The taxpayer was entitled to entrepreneurs’ relief on a sale of shares, as it was held that she had remained an employee of the company despite having been removed from its payroll several months before the shares were sold.
Background
Entrepreneurs’ relief was claimed on the taxpayer’s sale of her shares in a company on 7 October 2009. However, following an enquiry, HM Revenue & Customs (HMRC) disallowed the relief, on the grounds that the entrepreneurs’ relief conditions had not been fully satisfied. In particular, HMRC considered that the taxpayer had not been an officer or employee of the company throughout the year ending with the date of disposal (as required by TCGA 1992, s 169I(6)(b)). The taxpayer appealed.
The taxpayer had previously been an employee of the company, working as a clerical assistant to her husband, who was
