I have a client who is retiring and is selling the shares in both of his companies.
Company A is owned 100% by the shareholder and owns the trading premises which it lets to Company B
Company B is owned 100% by Company A and is the trading company.
Question: Is it possible that the shareholder can claim 10% ER on sale of Company A which owns the premises or will this be subject to normal CGT as not a trading company?
(Unsure as wondered as its part of a group that trades whether this may still qualify for ER?)
Thank you for any help on this
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Are there significant non-trade, ie investment, activities in the group? By 'significant' I suggest that you use, say, 20% in the context of various criteria. Let me think - total assets and income should be a good starting point.
You could always look at the legislation as well - it isn't that difficult to follow.
I have a client who is retiring and is selling the shares in both of his companies.
Company A is owned 100% by the shareholder and owns the trading premises which it lets to Company B
Company B is owned 100% by Company A and is the trading company.
If Company B is owned by Company A, surely the retiring client is only selling the shares in Company A?
Question: did you read the following question?
Question: Is it possible that the shareholder can claim 10% ER on sale of Company A?
Thank you. Company A just receives rent from Company B. It has no other trade.
The shareholder owns the shares directly in A but A then owns 100% of B
