The Upper Tribunal has overturned the decision of the First-tier Tribunal in McQuillan v HMRC, finding that non-dividend bearing redeemable shares constituted ordinary share capital for the purposes of section 989 of the Income Tax Act 2007 (section 989) ([2017] UKUT 344 (TCC)) (see Focus “Ordinary share capital: can a negative prove a positive?”,

While the decision is perhaps unsurprising given that the First-tier Tribunal’s decision was a departure from HM Revenue & Customs’ (HMRC) practice and conflicted with Castledine v HMRC, taxpayers should be mindful of its potential impact ([2016] UKFTT 145 (TC), Read more.