Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Employed at date of sale

23 May 2014
Issue: 4453 / Categories: Tax cases , entrepreneur's relief , Capital Gains

S Corbett (TC3435)

The taxpayer was an employee of Optivite a company of which her husband was director. She held 1 500 shares.

She was removed from the payroll in February 2009 to help negotiations with another business Kiotech which wanted to buy Optivite. Her husband’s pay was increased by the amount of her former salary.

The taxpayer continued to carry out her duties until Optivite was sold in October 2009. She included a claim for entrepreneur’s relief in her 2009/10 tax return on the disposal of her shares.

HMRC refused on the basis she had not been employed by the company for the whole year ending with its sale (TCGA 1992 s169I(6)(b)).

The taxpayer appealed explaining she had been taken off the Optivite payroll because Kiotech had a policy of not employing directors’ wives. The First-tier Tribunal accepted the reason.

The judge was also satisfied that Optivite...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon