D George v HMRC

Cathya Djanogly

In D George v HMRC [2018] UKFTT 509 (23 August 2018) the FTT found that entrepreneurs’ relief (TCGA 1992 s 169H) was not available on a disposal of shares as the vendor had not had voting rights for the required period of time despite the fact that it had been agreed to enfranchise his shares more than a year before the disposal.

Mr George had joined TRL a family owned company as an executive director. The company had flourished under his management and he had subsequently been offered the opportunity to acquire £1m worth of C and D shares in it. These shares represented 6.9% of the nominal value of the company’s share capital and carried no voting rights. In order to ensure that Mr George remained incentivised Mr Thornton the chairman of TRL (whose family owned the company) later decided to enfranchise...

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