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Individual was not an employee upon disposals of shares

By Mark McLaughlin, April 2021

The appellant was not an employee of a company for the required period prior to disposals of his shares in the company and so was not entitled to entrepreneurs’ relief in relation to those disposals.

Summary

The appellant was not an employee of a company for the required period prior to disposals of his shares in the company and so was not entitled to entrepreneurs’ relief in relation to those disposals.

Background

In 2004, the appellant set up a company (‘BML’) with a view to creating a dedicated smart metering business. In March 2007, another company (Bglobal) was created as a corporate vehicle through which BML would be listed on the alternative investment market (AIM). When Bglobal listed on AIM, the appellant was a director and chief executive of BML and Bglobal. He was also the largest single shareholder with some 23.66% of the shares. 

The appellant

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