Market leading insight for tax experts
View online issue

Harvey’s Jersey Cream Ltd v HMRC

In Harvey’s Jersey Cream Ltd v HMRC (TC03045 – 14 November 2013) the taxpayer company (‘Harvey’s) was appealing against a decision by HMRC to deny an enterprise investment scheme (EIS) claim. Harvey’s had raised monies by an issue of shares in order to increase its interest in a trading partnership in which it was co-partner. The monies had therefore been paid to the other partners. Under the EIS regime (TCGA 1992 Sch 5B) taxable gains can be set against amounts paid for shares in a ‘qualifying company’ for the purpose of a ‘qualifying business activity’. According to the tribunal this meant that the monies must be raised and employed for the ‘activities of the trade’.

The tribunal pointed out that under the Partnership Act 1890 s 5 the trade of a partnership is carried out by each partner. As the partnership was trading so...

If you are not a subscriber, subscribe now to read this content.
If you are already a subscriber, sign 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 article in full.
EDITOR'S PICKstar
Top