Richard Hirst v HMRC

In Richard Hirst v HMRC [2014] UKFTT 924 – 29 September 2014 the FTT found that a director who had resigned from a company had de facto remained its employee.

Mr Hirst’s 2009/10 self-assessment return recorded a disposal of shares and the CGT calculation included a claim for entrepreneurs’ relief. HMRC disallowed the relief on the ground that Mr Hirst had not been an officer or employee of the company during the year prior to the disposal (TCGA 1992 s 169I(6)(b)).

Mr Hirst had been joint managing director of the company but had resigned from his position in December 2007 in order to control costs as the company was in financial difficulties. He had continued to source new business for the company after his resignation. He had subsequently been arrested for a serious criminal offence; although he was eventually acquitted this meant that he was...