We have a client who has disposed of their 40% holding in a foreign company for cash consideration of £200,000 plus the exclusive rights to sell in certain regions of the world.
The base cost of his shares was £100 and the value of his shareholding pre-sale amounted to approx £1.5 million.
My question is this. Is his CGT liability going to be £1.5 million less base cost of £100? Or will the sales rights just obtain a proportion of his share base cost?
In any case, I suspect the first choice would be better so that he can 'bank' the ER and obtain an uplift in base cost in the event he ever sells the rights.
I've looked online and in Tolleys, but I think I am being too specific with my searches.
Any help and nudge towards the relevant legislation/guidance would be gretaly appreciated.