A shareholder who held 4.99998% of the ordinary share capital of a company was entitled to capital gains tax entrepreneurs’ relief following the First-tier Tribunal’s decision that the High Court would have granted rectification to allow the shareholder to have owned a 5% holding as originally intended.  

Summary 

A shareholder who held 4.99998% of a company’s ordinary share capital was entitled to capital gains tax (CGT) entrepreneurs’ relief (ER) following the First-tier Tribunal’s (FTT’s) decision that the High Court would have granted rectification to allow the shareholder to have owned a 5% holding as originally intended.  

Background 

The appellant had, since 2012, known two individuals (BR and JC) who founded a company (ISGH). It was agreed with BR and JC that the appellant would buy 5% of the company for £500,000. The