UT-2023-000116 - [2025] UKUT 00183 (TCC)

The Taxpayer’s key ground of appeal is that the FTT erred in law by agreeing with HMRC’s primary submission, viz “that given [the Taxpayers’] stated purpose of securing EIS disposal relief, it necessarily follows that they had a main purpose of obtaining an income tax advantage. This arises from the definition of income tax advantage in section 687.”

HMRC have confirmed in their Response to the Notice of Appeal that they do not seek to challenge the FTT’s decision on HMRC’s secondary submission that, setting aside the conclusion on HMRC’s primary submission, the Taxpayers did not have a main purpose of obtaining an income tax advantage as a matter of fact and evidence.