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BES Relief Regarding FA84 s12, 15 AC 2000 Finance Act 1984 Section 12(1)(c)(i) (as amended). Two companies with different shareholders set up to develop and operate adjacent hostels, All shareholders claiming BES relief. Both BES issues having same promoters. Possibility that after five years the properties would be converted to apartments. No shareholders agreements or prearranged exit mechanism (such as put options etc). During the first few months of the operation of the hostels there was little differentiation in the trading activities of the hostels. Subsequently operated as separate entities. 1. Whether
both companies "act in pursuit of a common purpose"? 2. Whether
both companies are "under the control of any person or group of persons or
groups of persons having a reasonable commonality of identity" Decision 1. No 2. Yes. |
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