Was hoping someone could help me with the following:
Husband - Owns 5% of shares (Director)
Wife - Owns 45% shares (Not a director/employee)
Both are due to sell their shares and obviously would like to pay 10% tax on the sale.
The husband qualifies ok for the relief, however regarding the wife's shares, I'm think we have two possible options:
Option 1 - She isn't an employee/director,but could we not argue that because of her significant shareholding and the fact that she attends all meetings she could be viewed as a non appointed director/employee, and would therefore meet the 1 year employee/director rules. (not sure if I'm clutching at straws here?) What do HMRC class as being employed? Could you be seen to be employed by a company even though you do not receive a PAYE salary from then?
Option 2, Transfer her shares to the husband. These would then be sold on immediately, meaning husband would not have owned the shares for atleast 12 months, however could we not argue that because the wife held them for a sufficient period, and the shares were transferred on a NGNL basis that this is sufficient for the 45% shareholding?
I would be interested to see if anyone has had any experience in any of the above arguments.