Can anyone point me to a definitive statement/case law/piece of legislation that say that disposal of some of the shares held in a qualifying company will attract entrepreneurs relief.
This question has been asked before and debated but I am looking at the options available to a client who wants to sell his shares gradually of the next few years to his children (well when I say sell I mean gift) and as it would be more beneficial to pay the ER CGT rate of 10% than defer the gains this is the route we are looking into.
The I have read posts on here, CIOTs guidance, HMRC notes (which actually seem to indicate you are OK to sell small holdings as long as the qualifying conditions (5%, trading, director etc) are met) but really wanted something simple in black and white to refer to/back it up. There is lots of commentary and examples surrounding part disposal of sole trader business but nothing on part disposal of shares
I am inclined to think it is OK but just looking for that little insurance policy to back up my inclination!
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Guidance friom CIOT and HMRC
http://www.tax.org.uk/Resources/CIOT/Documents/2013/11/4entrepreneurs-re... This is from CIOT with HMRC answering a number of queries from practitioners on ER. The reason you will find it hard to see an exact answer is that it depends on the circumstances. See example C2 and references to HMRC manuals which are hopefully still around.
Edit: on further research, I'm not sure it does depend on the circumstances. See this thread:
https://www.accountingweb.co.uk/anyanswers/question/entrepreneurs’-rel...
I stand by ...
... everything that I said in the thread referred to. Since then, I have seen numerous part-disposals of shares all qualifying for ER (in as much as HMRC haven't challenged a single one).
I agree with BKD
And I think it is in black and white in the legislation.
Only when you get down to 5% do you need to sell all of your shares in order to get ER.