Buy back of company shares of separated spouse

Buy back of company shares of separated spouse

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The company is owned 60% by husband, 40% by wife.  The couple separated last tax year. If the company buys back all the wife's shares, can she meet the conditions necessary to obtain capital gains treatment? This requires the shareholder

a) to cease to be connected with the company (30%+ holding /control etc.) after the buyback and

b) to make a substantial reduction in shareholding,

in both cases taking account of her associates' holding.

Whilst generally spouses remain associated /connected until divorce, the definition of associates in s219 legislation states associates are spouses living together. This suggest we can ignore husband's holdings, now they are separated. However, I have come across two articles saying you cannot have CGT treatment on such a buyback until the spouses are divorced.

Can anyone explain this apparent contradiction please.

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