Kevin Read discusses a recent case that has highlighted a key difference between partnerships and shares in the business asset disposal relief rules.
Most of the cases on entrepreneurs’ relief (now called business asset disposal relief (BADR)) have concerned the disposal of private company shares.
A notable exception was Gilbert (t/a United Foods)  UKFTT 705 (TC), dealing with the disposal of part of an unincorporated trade. Although only a First-tier Tribunal (FTT) decision, the judgement in favour of the taxpayer made it clear that a ‘disposal of… part of a business’ (as required by TCGA 1992 s 169I(2)) must not simply be a disposal of one of the activities carried out in the course of a trade, but instead, a disposal of a viable section of a composite trade which would still be recognisable as a trade if separated from the composite whole.;