Entrepreneurs’ relief and Bill Clinton’s definition of the word ‘activities’!

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Entrepreneurs’ relief and Bill Clinton’s definition of the word ‘activities’!

By Kevin Read, March 2020

Kevin Read considers a recent entrepreneurs’ relief case that examined the definition of ‘qualifying trading company’ and what constitutes non-trading activities.

The recent First-Tier Tribunal (FTT) case Jacqueline and Neil Potter v HMRC [2019] UKFTT 554 (TC) considered whether entrepreneurs’ relief (ER) was available on the liquidation of a company that had previously been trading. 

It is an interesting case, as it considered two different matters. Firstly, had the liquidation actually happened within three years of cessation of trade? Secondly, had the company (Gatebright Ltd) been a qualifying trading company for the twelve months up to cessation of trade? (Note that, following FA 2019, the latter qualifying period would now be 24 months). 

Invested cash
The family owned all the shares in Gatebright Ltd, which traded on the London Metals Exchange. Following the financial crash, it sought to

Subscribe to a Tax Insider newsletter to get instant access to the Tax Article library.

Get instant access to 1798 articles and a 14 day free trial!
Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!