In M Stolkin and others v HMRC [2024] UKFTT 160 (TC) (26 February 2024) the FTT dismissed the taxpayers’ appeals and concluded that their entrepreneurs’ relief claims relating to a disposal of shares in a company failed because the company was not trading.
The taxpayers were shareholders in a company which acquired a substantial parcel of land in West London (‘the site’). The company categorised the site as a fixed capital asset of its investment business. Considering the company’s initial plans for the property the FTT stated that it was correct to do so. The site was the company’s only fixed asset.
The company changed its plans for the site after the relevant planning authorities loosened restrictions (of their own volition without any effort by the company). The company then acquired a better planning permission and worked to try to achieve an even better position before selling the site. A little...
