Business owners denied entrepreneurs’ relief on technicality in HMRC v Michael and Elizabeth McQuillan

The Upper Tax Tribunal has agreed that HM Revenue & Customs was right to deny entrepreneurs’ relief to a pair of company owners, despite acknowledging that the outcome was unfair and the relief had been devised precisely for entrepreneurs like them.

The decision, which overturned a First-Tier Tax Tribunal judgment last year, turned on whether Michael and Elizabeth McQuillan’s holding of redeemable shares with no right to a dividend counted as ordinary share capital (HMRC v Michael and Elizabeth McQuillan, 2017 UKUT 0344 TCC).

The tribunal decision may be found at –