In J Wardle v HMRC [2021] UKFTT 124 (TC) (27 April 2021) the FTT decided that entrepreneurs’ relief (now called business asset disposal relief) was not available to a partner in a partnership which had not yet commenced trading at the time of the disposal.
The taxpayer was a partner in a partnership established to develop construct and operate three renewable power plants. The partnership commenced pre-trading activities in 2014 and in the following year sold two of the plants at a time when it had not begun trading. The taxpayer claimed entrepreneurs’ relief in respect of the disposals.
The only issue for the FTT was whether the activities of the partnership met the definition of ‘business’ in TCGA 1992 s 169S(1). For the purposes of entrepreneurs’ relief a ‘business’ means anything which is a trade profession or vocation and is conducted on a commercial basis...
