The taxpayer’s claim for entrepreneurs’ relief failed as the requirement to hold at least 5% of the company’s issued share capital meant at least 5% of the total nominal value of the company’s share capital. 
 
Summary 
 
The taxpayer’s claim for entrepreneurs’ relief (ER) failed, as the requirement to hold at least 5% of the company’s issued share capital meant at least 5% of the total nominal value of the company’s share capital. 
 
Background 
 
The taxpayer was approached and agreed to invest in a company (FGL). At that time, FGL’s issued share capital was divided into shares with a £1 nominal value. FGL’s lawyers advised that he subscribe for shares with a 10p nominal value, as this would be more straightforward than obtaining the permission of existing