TC09530 - [2025] UKFTT 00566 (TC)

Case Number: TC09530

Taylor House

Appeal reference: TC/2024/02905; TC/2024/02906; TC/2024/02907

CAPITAL GAINS TAX – entrepreneurs’ relief – disposals of shares in a company holding property and seeking planning permission for the re–development of that property into residential and commercial spaces – whether, throughout the period of one year before the disposals, the company in question was a “trading company”, which is to say a company carrying on trading activities whose activities did not include to a substantial extent activities other than trading activities – held that, in taking steps to obtain planning permission, the company was carrying on activities for the purposes of a trade that it was preparing to carry on or with a view to starting a trade and that it was therefore carrying on “trading activities”, as defined, but that its substantial non–trading assets, the fact that its only income was investment income and the fact that a meaningful part of the re–developed property would include commercial space to be let out for investment income meant that its activities included to a substantial extent activities other than trading activities – accordingly, the company was not a “trading company” throughout the relevant period and entrepreneurs’ relief was not available for the disposals – appeals dismissed

Heard on: 6 May, 2025

Judgment date: 22 May 2025

Before

TRIBUNAL JUDGE TONY BEARE

MR DUNCAN MCBRIDE

Between

MRS TAMZIN EYRE

MRS ZAYNE MACLEOD

MR CONRAD PHOENIX

Appellants

and

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellant: Ms Rebecca Sheldon, of counsel, instructed by Tax Innovations Limited

For the Respondents: Ms Gemma Truelove, litigator of HM Revenue and Customs’ Solicitor’s Office

DECISION