Hi, I have a client, H & W company who is wishing to wind up the ltd Co, since both have now taken employed jobs and the company has just ceased trading.
Qualifying conditions had been met for ER relief, the company has been trading for about 10 years and H& W share split was 40:60. Both were directors and employees.
However last year a share transfer was made to change the split to H: W 90:10 (since W had taken another job).
So, my question is simply, do the 50 transferred shares not qualify for ER, since they are then not continuously held by one shareholder for 2 years?
Or because both shareholders qualified, and the transfer is between them is ER available on the whole amount?
Responses are much appreciated.