A professional partnership incorporated their business approx 3 years ago. The 2 partners who had been in partnership for some 20 years became 50% shareholders.
1 of the partners now wishes to retire and withdraw his directors loan account only. He is then happy to cancel his shares or gift to the other shareholder
Does this then create a problem for the other shareholder in terms of being taxed on the value of the shares? He will then own 100% of the company. There is value in the business. Or does anyone believe that this event would be non-taxable?
Thanks for any guidance.