This appeal concerned a claim for entrepreneurs’ relief (ER) made by Frances Delaney in her tax return for the tax year ended 5 April 2016, which was refused by HMRC.

This related to the sale of Delaney’s business operating two nursery schools, St James and St Clements, to a close company called Miss Delaney’s Nursery Schools Limited (MDNSL) on 31 August 2015.

The nursery schools were valued at £1,105,000 on 12 January 2016 based on the accounts.

Much of the tribunal hearing focused on  the timings of the transaction, the lack of paperwork or contracts, including a business sale agreement and the terms of the purported agreement prior to 3 December 2014.