Blog
YouGov poll ahead of November Budget shows over half of the British public want complete abolition of IHT
James Ward
In the First Tier Tribunal case of TC03273: Jeremy Rice, a car salesman was allowed to claim Entrepreneur’s Relief on the sale of his premises when he closed his business and started up elsewhere. The relief was claimed on the basis that it was a sale of a business asset within three years of cessation of trade.
The key issue for the tribunal was whether or not there had been ‘cessation’ of trade rather than ‘organic growth’.
The original business was selling sports cars from a lot on a busy road in Peterborough with no internet presence, relying on passing trade. Mr Rice sold this business due to vandalism.
He then started up a new business selling family cars. He did not have a visible lot, due to planning restrictions. He sold via the internet by appointment only.
The Tribunal held that the vandalism was an external factor, and therefore not ‘organic change’. The businesses were also of a completely different character.
The Tribunal agreed with Mr Rice that his original business had indeed ceased and that, given the premises were sold within three years, entrepreneur’s relief was available to reduce the Capital Gains Tax (CGT) payable.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
You may also be interested in:
Blog
Remote Work Meets Real Estate: Legal Insights on Home Office Conversions
Jessica Rice
Blog
Press Round-Up: Regulatory and Professional Discipline – August and September 2025
Imogen Roberts
Share insightLinkedIn X Facebook Email to a friend Print