S 219 ICTA 1988 apparently provides for the vendor to secure Capital Gains Tax treatment on the entire proceeds on a sale of shares to the company provided that certain conditions were met.
One of the main condition is that the company must be an unquoted trading company or the holding company of a trading group.
Tax Bulletin Issue 21 states that '.... for example, property investment is not a trade'.
Does anyone know of any contrary legislation provisions whereby a company investing in residential properties, and whose income consists solely of rents, could qualify as a trade for the purposes of obtaining Capital Gains treatment for a minority shareholder who is desirous to be bought out?
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