McGregor v Adcock

[1977] STC 206; [1977] 1 WLR 864

Although this was a retirement relief case, the case tests whether the sale of certain business assets was sufficient to constitute the sale of 'part of a business' and should, consequently, be relevant for entrepreneurs’ relief purposes from 2008/09. A farmer, aged 68, had farmed 35 acres of land for more than 10 years. He sold 4.8 acres, for which he had obtained planning permission for building development. The Inland Revenue issued an assessment and the taxpayer appealed on the grounds that the gain was covered by retirement relief.

It was held that retirement relief was not due on the disposal as the sale did not represent a disposal of a 'part of the business'.