P Kennedy v HMRC [2021] UKFTT 3 (TC) (5 January 2021) shows all too clearly what happens when a taxpayer attempts to run an argument which cannot be supported by the facts. One of the conditions for entrepreneur’s relief is that the person making the disposal must have been an employee of the company which has been sold for the 12 months prior to the disposal. Here the taxpayer’s employment with the company was terminated in 2013 and the disposal occurred in 2017. On the face of it the conditions were not met but the taxpayer argued that because of irregularities in the way that his termination was handled he remained an employee up to the date of the sale of the shares. This argument was not accepted by the FTT which clearly had difficulty accepting some of his evidence not least because during the...
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