Market leading insight for tax experts
View online issue

Kavanagh v HMRC

Entrepreneurs relief: the 5% test

In S Kavanagh v HMRC [2022] UKFTT 173 (TC) (31 May) the FTT dismissed the taxpayer’s appeal finding that he did not own the necessary 5% of ordinary share capital and voting rights in order to obtain entrepreneurs’ relief on a disposal of shares.

While the shareholders had a commercial agreement that the taxpayer would have a 5% interest the number of shares in issue meant his holding was in fact 4.997%. He argued that the remaining fraction required to bring his holding up to 5% was held for him on trust but he failed to establish this on the facts.

Read the decision.

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top