Client is selling shares in a company and plans to claim Entreprenuers Relief. As far as I am aware if an associated person owns a controlling interest in the company after then ER may not be claimed. My question is, outside of the clients spouse, who would be considered an associated person under Entreprenuers Relief rules?
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I'm not sure what rule you (think you) are referring to. So I will talk in the generic.
Generally, TCGA refers to persons being connected, rather than associated. Connected persons are as defined in s286.
Echoing TD's query, exactly why do you think ER would be denied where an associate continues to hold a controlling interest? (The vendor himself could continue to hold a controlling interest without prejudicing ER). Are you perhaps thinking of share buyback rules?
My (and TD's) point was - who told you, or where did you read, that the controlling interest of an associate has any bearing on availability of ER?
I may need to reinstate comment #2. Your additional facts smell of a scheme. Be wary, when clients are scheming.
But Wilson is right about what I was getting at with comment #1.