We have c client who is looking to set up a company to trade and hold investments of approximately £100,000. The money will come from a loan from his other trading company. The plan is for the investments to accumilate and make a profit over a number of years at which point these will be withdrawn and put into a pension fund.
I have advised the client that I do not think the company would qualify for Entrepreneurs Relief as it is not a trading company, however the client has said they think it is and has sent a link by some "trading guru".
Could anyone confirm if this company would qualift for ER? My other concern is that if tha original trading company's only income ends up being loan repayments from the investment company, then this could also lose its ER qualifying status?