Entrepreneurs' relief (ER) meaning

In this issue: Tax treatment Corporation transactions and share incentives HMRC Manuals tracker Useful information Weekly highlights from other practice areas Tax treatment Cooke v Revenue and Customs Commissioners [2024] UKFTT 272 (TC) In this matter, the First-tier Tribunal (FTT) upheld the taxpayer’s appeal regarding his qualification for entrepreneurs’ relief (now business asset disposal relief) on a £600,000 gain arising from the sale of his entire shareholding in a company. A prerequisite for the relief was that, throughout a specified period before the sale, he owned at least 5% of the company’s ordinary share capital. In reality, his holding was 4.99998%, not a full 5%. The deficit stemmed from an error caused by reliance on a spreadsheet that rounded percentage figures to two decimal places. The FTT determined, as a finding of fact, that the intention when the shares were acquired was to transfer to him no less than 5%, and no more than an amount immaterially above...

In this issue: Key developments and horizon scanning Trespass and adverse possession Disputes and remedies Contractual issues Service charges Property disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Trackers Latest Q&As Key developments and horizon scanning RICS responds to political parties’ manifestos The Royal Institution of Chartered Surveyors has issued its response to parties’ positions on business rates, the high street and regeneration. RICS signalled that the next decade will be unlike any other for commercial property, and the next government will need to partner with the sector to confront industry challenges. See LNB News 21/06/2024 39. Trespass and adverse possession Claim for possession against student protesters (University of Birmingham v Persons Unknown) In University of Birmingham v Persons Unknown [2024] All ER (D) 84 (Jun), [2024] EWHC 1529 (KB), the King’s Bench Division considered the claimant university’s CPR 55...

Wilkinson and others v HMRC [2023] UKFTT 695 (TC). Mr and Mrs Wilkinson jointly held around 58% of the ordinary share capital in P Ltd. A sale was agreed whereby the BCA group would acquire P Ltd via an acquisition vehicle, TF1 Ltd, for £130m (the transaction), with the price satisfied through a mix of cash and loan notes issued by TF1 Ltd (the exchange). In the days immediately before the deal, they transferred a substantial number of P Ltd ordinary shares to their daughters. On completion, shareholders other than the daughters received cash and loan notes; the daughters instead took a different class of loan notes together with B ordinary shares in TF1 Ltd, and no cash. The daughters were also appointed as non-executive (and unpaid) directors of a company that was a 100% subsidiary of P Ltd. These steps were intended to ensure, under TCGA 1992, s 135, that the daughters did not face an immediate capital gains tax (CGT) charge on the gain from disposing of...

ARCHIVED: This tracker is archived and no longer updated. For an overview of Court of Protection cases from 2025 onwards, see: Court of Protection—table of cases. P, Re (Property & Affairs Deputyship: Jurisdiction) [2024] EWCOP 77 (T2) Court of Protection determines it has jurisdiction to consider whether P’s mother should continue as property and affairs deputy The proceedings related to P, an adult who sustained a brain injury in an accident and had a substantial personal injury claim. His mother had been appointed by the Court of Protection as his property and affairs deputy, and the present decision addressed an application seeking to revoke that appointment. The litigation had been protracted. Earlier, the court permitted ‘closed material’ to be withheld from P’s parents to facilitate capacity assessments; for a summary of that ruling, see here. Despite that step, neither the Official Solicitor nor the court gained clarity about P’s condition or even his location. It was reported that P was now residing in Italy. HHJ Burrows concluded that...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...