Pottering around: Trading and Entrepreneurs’ Relief
Entrepreneurs’ Relief (“ER”) is a prize worth fighting for, reducing as it does the rate of CGT to 10% on up to £10m of capital gain. The recent First-tier Tribunal case of Potter  UKFTT 554 (TC) raises two points of great practical interest on ER:
- When does a diminution or temporary suspension of trading activities fall to be treated as a cessation of those activities?
- Oft-asked (but seldom definitively answered): in what circumstances can investment activities lead to a loss of ER?