The taxpayer filed a paper self-assessment tax return for 2009-10. He declared a capital gain on which he claimed entrepreneurs’ relief. He also included on the employment page against pay from employment a sum of £74 000.
HMRC refused the claim for entrepreneurs’ relief on the ground that the taxpayer had not been a director of the company for a full 12-month period before the disposal. The officer also assessed the £74 000 as a distribution on the basis the taxpayer provided no evidence showing receipt of payment and this suggested that it had been written off the taxpayer’s directors’ loan account (DLA) and not received as payment.
The taxpayer appealed.
The First-tier Tribunal agreed with HMRC that entrepreneurs’ relief was not due because the taxpayer had been neither a director nor an employee of the company for the requisite 12 months. In any event the taxpayer had...
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