Corbett and entrepreneurs’ relief

In Corbett, Mrs Corbett obtained entrepreneurs’ relief notwithstanding her apparent removal as an employee before the disposal of her shares in the business. She had continued her duties and her salary was paid to her husband following the termination of her contract. The case is fact-specific and it would be difficult (and unwise) to seek to emulate it for planning purposes. Nevertheless, the case prompts a re-examination of analogous circumstances and the increasing use of ‘zero hour contracts’, and relief will be available in some, but not all, of these situations. Appointment as an officer – particularly, a company secretary – remains the preferred route of enabling family members not previously involved with the business to qualify for entrepreneurs’ relief.