Case Law

In Cook (HM Inspector of Taxes) v Billings & Ors 2001 STC 61 a claim for BES relief in the UK was denied on the basis that the seven shareholders, whom each held just under 15% of the share capital in the company were associated with each other for the purposes of this relief. Therefore, they breached the 30% limit.

The taxpayer acquired over 99% of the issued share capital in April 1987. and in October 1987. In January 1988 the company issued further shares thus reducing the shareholder’s % to below 30%. He claimed BES relief. This relief was not available as he was connected with the company given that he owned more than 30% of the company during the relevant period. Wild v Cannavan (HMIT) 1997 STC 966