An accountant was not entitled to claim entrepreneurs’ relief in respect of the partial disposal of his business premises following the disposal of his audit practice.
The appellant was a sole practitioner accountant, and the sole owner of the practice premises. He purported to sell 50% of his beneficial interest in the premises by deeds dated 4 April 2008 (22.7%), 25 June 2008 (22.7%) and 23 April 2010 (4.6%). The purchasers in all three transactions were the appellant, his wife and his son as trustees of a pension scheme.
The appellant’s tax return for 2008/09 disclosed a capital gain relating to the sale in June 2008, and included a claim for entrepreneurs’ relief in respect of the disposal. Following an enquiry into the return, HM Revenue and Customs (HMRC) concluded that the appellant was not entitled to entrepreneurs’ relief. The appellant appealed.
The appellant pointed out
