Business Asset Taper Relief

Business Asset Taper Relief

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Shares owned in trading company (not listed) since incorporation in 1996 to when sold in 2006 – nil cost of shares.

Shareholding was 29% between 1996 to 2001.

Shareholding reduced to 24% for the period from 2001 to when sold in 2006. (5% given to husband in divorce settlement in 2001).

Remaining shares then sold to ex husband in 2006 for £100,000. She was never a director or full time employee.

I think the entire gain will be covered by business asset taper relief. I know the rules changed in 2000, but doesn’t she qualify for this early period because holding was more than 25% ?

I reckon only £25,000 less AE will be charged to CGT in 06/07. Is this correct, or am I missing something.

Thanks in anticipation.

David

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By User deleted
01st Feb 2008 09:30

No taint
They are voting shares, aren't they ? Please say yes.
If this is so, it seems that all BATR tests have been met including those for the 'toughest" period: ie pre-April 2000.
Agree your figures but am puzzled by "nil" cost remark-- not even par value ??

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