One of our clients bought 30% of the shares in a trading company subscribing for 30% of the shares in 1999 and claiming 30% relief. The cost was £50,000. In 2008 he may have acquired another 5%, he was unclear, but never registered the extra 5%. He certainly gave a shareholder £7,000, although no specific details were documented, and he is unclear if it were a loan, or to buy the shares. The entire holding is now being sold, with the company worth about £1,500,000.
he will either get £450k and his £7k loan back, or £525,000.
what I’ll his tax be in either case?