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An alternative view on the McQuillan case, capital gains tax entrepreneurs’ relief and the nature of zero.
KEY POINTS
- Can the decision in McQuillan be reconciled with the legislation?
- A loan to a company was converted into redeemable shares.
- Entrepreneurs’ relief did not exist when the redeemable shares were issued.
- The question of whether 0% was a fixed rate may have been a moot point; to be ignored for entrepreneurs’ relief the shares must have a right to a dividend.
- It seems that the judge was looking for a route to arrive at a fair and equitable answer.
In his article ‘Zilch nada zip’ (Taxation 26 May 2016) Andrew Hubbard mentioned that he and I had had some quite esoteric technical discussions. The one to which he referred boiled down to whether the greater part of nothing is nothing. I took the view...
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