We have a client (a company) which owns some valuable land. The land has been used in the company's trade for a number of years. The company is a close, unquoted company.
A third party has approached the company shareholders and wants them to grant him an option to purchase all their shares within a two year period. He will pay them a lump sum now and can exercise the option at any time. After 24 months the option expires and the shareholders retain the option 'fee'.
I have two questions:
1) Is the receipt of the option fee a part disposal of shares for CGT purposes?
2) The shares have been held for more than two years - would BATR be available? None of the shareholders are employees of the company but all are directors (part-time).
Thanks for your help.
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