John Humphrey Roberton Carver v HMRC

In John Humphrey Roberton Carver v HMRC [2015] UKFTT 168 (22 April 2015) the FTT found that the disposal of syndicate capacity by a LLoyd’s underwriter did not qualify for entrepreneurs’ relief.

Mr Carver underwrites risk through syndicates. Syndicates are the means by which insurance is written at Lloyd’s. In order to join a syndicate members must purchase ‘syndicate capacity’.

HMRC had rejected Mr Carver’s claim for entrepreneurs’ relief (under TCGA 1992 s 169H) in respect of the disposal of syndicate capacity. Mr Carver contended that he had disposed of a separately identifiable part of his business as he continued to hold capacity in other syndicates. HMRC considered however that the disposal of capacity did not constitute ‘part of a business’ as Mr Carver had not disposed of a ‘viable section’ of his business but simply of an asset used...