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Putney Power v HMRC

Although this case concerns EIS relief its real interest will be to those who deal with corporate tax. This is because the outcome hinges on a single point: when did the companies, which built and operated power stations, commence to trade? The facts are complex and will be of interest only to specialists (although the findings of fact at paras 22 and 23 might come as a surprise) but the extensive review of the case law on commencement of trade will be of wider interest.

It is surprising how difficult it can be to identify with certainty the point at which a trade commenced. The summary of the correct approach to determining this at para 202 is a