Enrepreneur's relief - related party

Enrepreneur's relief - related party

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My client owns 50% of the holding company of a trading group (Group A). The holding company has a 100% subsidiary, which itself has a 100% subsidiary.

He is also 45% shareholder in a second trading group (group B).

He's indciated that Parent A is likely to acquire Parent B at some point in the future and has asked whether entrepreneurs relief is available (as a means of extracting cash from Group A).

My gut feeling is No, but I don't appear to be able to find anything on this.

Incidentally there is a second individual who owned 50% of group A and 45% of group B and a third owning just 10% of group B.

Thanks.

 

 

 

Replies (2)

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By User deleted
04th Jul 2016 12:40

Well, I think your concern should be whether transactions in securities rules will apply, and not about ER, which may be available.

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Head of woman
By Rebecca Cave
04th Jul 2016 12:58

Why do you think that entrepreneurs' relief will not be available on the sale of the B Holding co shares to the A group?
If B is a trading group and client is officer or employee of B holding Co or of another company in the B group then entrepreneurs' releif should apply.
However, I agree with taxguru, the transactions in securities rules may apply.

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