J and N Potter v HMRC

In J and N Potter v HMRC [2019] UKFTT 554 (29 August 2019) the FTT found that a company had been trading for years after the issue of its last invoice so that its directors were entitled to entrepreneurs’ relief on its liquidation.

Mr and Mrs Potter were the directors and equal shareholders of Gatebright a company involved in the London Metal Exchange (LME). Mr Potter was an ‘introducing broker’ and a ‘dealer’ with a physical seat in the ‘Ring’ at the LME ‘within which billions of pounds worth of trades in base metals such as copper took place’. As a result of the 2008 financal crash the volume of trades declined dramatically and Gatebright issued its last invoice in March 2009. Also in 2009 Mr Potter was taken ill with pneumonia and was unable to work for a few months. He continued to seek...