TAPER RELIEF FOR PENSIONERS

TAPER RELIEF FOR PENSIONERS

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We act for a former employee of a PLC who has a significant holding of company shares. He has retired from the company and now receives a pension from them. The question is this - do his company shares continue to qualify for business asset taper relief even though he is no longer a true employee.

TCGA 1992 SCH A1 states that a 'qualifying office or employment has the same meaning as given in the Income taxes acts'

At certain points within the Legislation reference is given to employees being people who hold (or have held) a position of employment. However, this definition does not appear everywhere - my instinct tells me that BA taper relief does not apply post retirement - any help would be welcome.
david grindley

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By AnonymousUser
27th Jun 2006 14:38

Not an earthly...
I entirely agree with Daren P. The legislation here really means what it says and, on a number of occasions, I have gone to the length of warning employees of public companies of the BATR danger of them becoming (with the blessing of their employer) consultants to the company involved. A status enquiry, I have felt, might deny this classification but it was too risky not to warn. A pensioner is a million miles away from even this scenario.

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