In G Holland-Bosworth v HMRC [2020] UKFTT 331 (TC) (12 August 2020) the First-tier Tribunal (FTT) found that for the purposes of entrepreneurs’ relief (since renamed business asset disposal relief) the term ‘voting rights’ refers to votes exercisable in a general meeting.
The taxpayer disposed of some shares designated as B ordinary shares and claimed entrepreneurs’ relief. For relief to be available the shares needed to be in the taxpayer’s ‘personal company’ and this required the shares to confer on the taxpayer 5% of the voting rights in the company. ‘Voting rights’ is not further defined in the legislation.
The company’s articles provided that the holders of B ordinary shares had no right to receive notice of attend or vote in general meetings. The taxpayer therefore had very little chance of success but the articles provided that all shareholders had...
