There is a company with three owner-managers who have been business partners for a number of years.
Two of them, A & B currently have shares with all the normal rights and the other, C has restricted rights to assets on winding up currently.
Due to the efforts and entrepreneurial drive of C, A & B wish for C now to have full rights to asets on winding up. I would suggest that this 'reward' is not related to his employment by the company as such, but due to his efforts as an investor and a shareholder. Is there an exemption from ERS under these circumstances?
Any comments are gratefully received.
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Sadly not
you stray into Grays Timber territory if you start adding rights that are not in the articles and so end up with an income tax charge.
There is a small glimmer of hope in the an exemption for "friends and family" but looking at the only case law on that I would not be at all optimistic.