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Company was not shareholder’s ‘personal company’ for relief purposes

By Mark McLaughlin, November 2020

An individual shareholder’s claim for entrepreneurs’ relief was unsuccessful as the company was not the shareholder’s ‘personal company’ due to failing the 5% test for voting rights.  

Summary 

An individual shareholder’s claim for entrepreneurs’ relief was unsuccessful as the company was not the shareholder’s ‘personal company’ (within TCGA 1992, s 169S(3)) due to failing the 5% test for voting rights. 

Background 

The appellant held 37 shares in a company (THHGL), which were re-designated as 37 ‘B’ ordinary shares by special resolution in August 2007. Prior to the 2007 resolution and a re-designation of shares into ‘A’ and ‘B’ shares, there was a single

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