My Club Web Services Ltd v The Commissioners for HMRC
Decision date: 9 October 2026
Neutral citation: [2026] UKFTT 1417 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned HMRC's withdrawal of EIS relief for shares issued by My Club Web Services Ltd between 6 April 2018 and 31 October 2020, focusing on whether the company met the statutory trading requirement under s.181(2) throughout each relevant three-year Period B. The Tribunal found contemporaneous evidence of steps to trade ceased after the bank account closure and that the appellant had not shown, on the balance of probabilities, that it continued beyond 26 March 2021 to exist wholly for the purpose of carrying on a qualifying trade. Because each Period B extended beyond that date the Tribunal dismissed the appeal in full. The Tribunal did not reach s.183 issues as s.181 findings were dispositive.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The Tribunal treated objective contemporaneous conduct and documentation (including evidence of steps to preserve or resume trading) as determinative of whether a company exists wholly for the purpose of carrying on a trade throughout Period B; where such contemporaneous evidence ceases, the company may fail to prove continuous satisfaction of the trading requirement, with the last clear contemporaneous evidence effectively marking the end of the qualifying trading purpose.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal indicated that involuntary closure of a bank account is a relevant factor that can substantially impair a company's ability to trade but is not automatically determinative of cessation of the trading purpose; it also observed that evidence generated after HMRC enquiries begins has limited probative value about the company's earlier intentions or activities.