In Dilip Amin v HMRC [2016] TC 05265 the partial disposal of an accountant's business premises did not qualify for CGT Entrepreneurs’ Relief just because he also disposed of some goodwill at the same time.

  • The taxpayer has a sole trader accountancy practice.
  • He transferred 50% of his beneficial interest in his business premises to a pension fund of which he, his wife and his son were trustees over a two year period.
  • He also disposed of several audit clients for a nominal consideration as he was unable to carry out audit work.
  • In his tax return for 2008/09 he claimed ER on the partial sale of the business premises on the grounds that the transfer of audit clients was a disposal of part of his business.
  • HMRC denied ER.

Under s169I(2)(b) Entrepreneurs’ Relief (ER) will apply on a disposal of (or of interests in) one or more assets in use, at the time at which a business ceases to be carried on, for the purposes of the business

The First Tier Tribunal (FTT) accepted that the taxpayer had disposed of his audit practice, however the ER legislation does not allow relief for the partial disposal of his premises.

  • If the taxpayer had sold distinct office space as he no longer needed it to carry out the discontinued audit work then he may have been entitled to relief.
  • As it was, the sale of the premises and goodwill were wholly unconnected transactions.

The taxpayer’s appeal was therefore dismissed and the assessment and penalties upheld.


Case reference: Dilip Amin v HMRC [2016] TC 05265

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