Last week we learned that Venue Retail Limited, represented by John Harris, had defeated HMRC in the First Tier Tribunal. The case concerned the withdrawal of the EIS relief claimed by investors in the company that was formed to operate the merchandising operation for the 2012 Olympic Games.
The case revolved around the definition of the ‘commencement of trade’ and Harris was able to argue that trade started when ‘operations began’, rather than ‘ when the shop doors opened’ as argued by HMRC. Harris based his argument on some old WW1 excess profits tax cases.
As a consequence it is anticipated that the relief that was withdrawn will not be restored. Some £400,000 of taxation is thought to be involved.