HMRC appeal case removes entrepreneurs' relief from trust beneficiaries

News Team, 19/02/2021

The UK's Upper Tax Tribunal has overruled the First-tier Tax Tribunal (FTT) and stated that trust beneficiaries are only entitled to entrepreneurs' relief if they have been a qualifying beneficiary for a full year ending less than three years before the disposal.

The case - HMRC vs Quentin Skinner - revolved around three family members whose family business was held in trust for their benefit.

After the sale of the business, the family members and the trustee claimed Entrepreneurs’ Relief (ER) on the Capital Gains Tax (CGT) accrued.

HMRC refused the claim, stating the family members had not held an ...

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