A client runs a company in which the shares are owned 50/50 by himself and his ex-wife. In order to realise the value in the company (approx £300K) he needs to wind up the company, and make a capital distribution.
He is 52, his ex-wife 47.
He will claim retirement relief on his gain, as he is effectively retiring from the business.
The commercial reason for his actions is that his wife does not work for the company, and therefore half of all the profit he makes is contributing to his ex-wife's net worth!
This being the case, he intends to recommence trading after the present company is closed down (albeit in a smaller, less stressful and lower powered way), in order that he maintains an income, and keeps his clients happy.
Can anyone suggest whether he may run into problems with his retirement relief, and should he leave a gap between stopping and starting ?