A company was not a qualifying company for enterprise investment scheme capital gains tax deferral relief purposes in respect of an investor’s subscription for shares in the company.
The appellant company's business was the running of a grouse shooting estate with associated high-quality accommodation (Allenheads Hall). The estate was owned by the appellant, but Allenheads Hall was not.
HM Revenue and Customs (HMRC) refused to authorise the appellant company to issue a compliance statement (form EIS3) to an individual investor in the appellant (JH), to enable JH to claim enterprise investment scheme (EIS) deferral relief for capital gains tax purposes in respect of a subscription of £6.5 million for shares of the appellant on 13 July 2007. The appellant appealed.
Much of the £6.5 million share investment was spent on improvements to Allenheads Hall (which was owned by JH, although
