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Where Taxpayers and Advisers Meet

Entrepreneurs relief

Posts: 1
Joined: Fri Mar 15, 2019 2:53 pm

Entrepreneurs relief

Postby Anonymous1 » Fri Mar 15, 2019 3:02 pm

- company A which is trading is owned by 2 directors, 50% each
- they plan to sell company A to company B and claim entrepreneurs relief
- there is a call option contract in place whereby the directors of company A can buy company B
- can the directors still claim entrepreneurs relief on the sale if, after a period of 2-3 months, they ultimately end up indirectly controlling company A again through their ownership of company B?

Posts: 4268
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Entrepreneurs relief

Postby pawncob » Fri Mar 15, 2019 6:53 pm

With a pinch of salt take what I say, but don't exceed your RDA

Posts: 214
Joined: Tue Sep 26, 2017 6:28 pm

Re: Entrepreneurs relief

Postby AdamS93 » Sat Mar 16, 2019 12:40 pm

You may want to get up to speed on the rules around transactions in securities.

Buy the sounds of it this will be caught, and if so, you will be looking at income tax and not capital gains tax.

Return to “Capital Gains Tax, CGT”