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Does Entrepreneurs Relief apply to Class B shares?

My client is aware ER applies to Class A shares but wishes to know if they apply to Class B also.

My client wants to incentivise two of his staff by granting them A class voting rights shares in his company. He is aware they need to have at least 5% to be eligible for ER on disposal of the shares in the future. His question is (and I confess to not knowing the answer) does he have to also offer them some of the existing B class dividend shares which he wants to keep for himself. I'd be grateful for contributors comments and/or signposting please.

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09th Oct 2018 16:02

You say they're voting shares - are they essentially the same as the B shares in all but name ?

If not, what's the difference ?

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09th Oct 2018 16:02

I'd start with the HMRC CGT manual.

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to Accountant A
09th Oct 2018 16:15

Accountant A wrote:

I'd start with the HMRC CGT manual.

Also the recent McQuillan case.

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to lionofludesch
23rd Oct 2018 13:58

Many thanks. Very useful and helpful signposting.

Cheers.

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09th Oct 2018 16:07

Ask your client "you say they have to have 5%; 5% of what?" and he will answer his own question.

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09th Oct 2018 16:28

5%? Have you considered EMI options?

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