Client owns 100% of shares in a company and proposes to sell 10% of his holding to another individual at market value. There is a plan to develop and sell the business in a few years, the new investor will be assisting with finding a buyer and will be a director in the company.
It is proposed that the consideration for the sale of the 10% will be deferred until the whole business is sold, and then paid in full (there will probably be another trigger point built in to the agreement in case it doesn't sell). This will be after the usual date for payment of the CGT arising. Will my client be able to defer payment of tax until consideration is received? It seems that there is provision for such a delay if consideration is payable in instalments, but would this apply where there is just one payment?
Many thanks in advance