In S Kavanagh v HMRC [2022] UKFTT 173 (TC) (31 May) the FTT dismissed the taxpayer’s appeal finding that he did not own the necessary 5% of ordinary share capital and voting rights in order to obtain entrepreneurs’ relief on a disposal of shares.
While the shareholders had a commercial agreement that the taxpayer would have a 5% interest the number of shares in issue meant his holding was in fact 4.997%. He argued that the remaining fraction required to bring his holding up to 5% was held for him on trust but he failed to establish this on the facts.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
