The recent decision in McQuillan v HMRC highlights the challenges faced by taxpayers seeking to apply correctly those parts of the UK tax code that require interpretation in the absence of conclusive definition ([2016] UKFTT 305 (TC)).

McQuillan addresses whether shares with no dividend rights can be said to carry a fixed rate of dividend and therefore not be treated as ordinary share capital for the purposes of entrepreneurs’ relief. In deciding that they did carry a fixed rate, the First-tier Tribunal (the tribunal) took a position that departs from both HM Revenue & Customs (HMRC) and market practice, and seemingly contradicts the recent tribunal decision in Castledine v HMRC ([2016] UKFTT 145 (TC)). Read more.