The taxpayer’s holding of cumulative preference shares constituted ‘ordinary share capital’ for the purposes of the entrepreneurs’ relief ‘personal company’ definition as they did not carry the right to a dividend at a fixed rate.  
 
Summary 
 
The taxpayer’s holding of cumulative preference shares constituted ‘ordinary share capital’ for the purposes of the entrepreneurs’ relief ‘personal company’ definition (TCGA 1992, s 169S(3)), as they did not carry the right to a dividend at a fixed rate. 
 
Background 
 
In December 2013, the appellant disposed of his entire shareholding in a company of which he was a director. His shareholding comprised 44,183 ordinary shares, 396,000 preference shares and 24,660 ‘B’ ordinary shares. 
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