I have a client Mr X who is about to sell his 100% shareholding in A (sole director) to co B in which he is a director and 40% (largest) shareholder. X will continue as director of A and run it.
The sale will be c£1m of which £250k paid up front then 10% of turnover until the £1m is hit, which is expected to be about 9 months. (I'm happy that this is a fair value for the company). The sale however will be slightly short of the 2yr threshold for ER. I had thought of having the agreement so there were large pension contributions and a lower sale price, but he has used his current and previous pension limits.
My question hd been more general than this ... what happens re the CGT liability with deferred consideration? Will he have to pay the entire CGT now despite only receiving 25% of the cash?
Is there anything that I can suggest to reduce what will be a large CGT bill? He has a long term girlfriend but is unmarried so no inter-spouse transfer available.