TAXtv: Taxpayer wins entrepreneurs' relief appeal
Winning an appeal for entrepreneurs' tax relief for the sale of shares in a business where you hadn't been working for months may seem like a stretch, but that's what one taxpayer has done.
Mrs Corbett was working as an assistant to her husband who was a sales director in Kiotech International until February 2009. When she sold her company shares in October of that year she wasn't an employee of the company.
Given that entrepreneurs' relief can only be claimed by people who were either an employee or officer of the company for one year before the sales of the shares, it would seem that Mrs Corbett's appeal for entrepreneurs' relief disallowed by HMRC was bound to fail.
But due to a quirk of her personal and business circumstances, Mrs Corbett's appeal was successful.
Her husband was involved in the sale of the business to a company which prohibited spouses of director.
To comply with the buyer's requirement Mr Corbett gave his wife a P45 and took her off the payroll. But she continued to do her administrative tasks after she was no longer an...