Lee Sharpe highlights an important recent case in the context of entrepreneurs’ relief (now business asset disposal relief) which also involved the transactions in securities income tax anti-avoidance provisions.
This article looks at the Allam case, focusing on the meaning of ‘substantial non-trading activities’ for entrepreneurs’ relief (now business asset disposal relief (BADR)) purposes, and ‘income tax advantage’ in the context of transactions in securities.
The cases are Allam v HMRC [2021] UKUT 0291 (TCC), which considered aspects of the earlier Allam v HMRC [2020] UKFTT 0026 (TC), which contains a number of points that will be of interest to practitioners. This article will concentrate on, arguably, the two more commonplace areas of risk when a shareholder sells one company to another:
- Denial of entrepreneurs’ relief (now BADR) because
