I have a new client company with two brothers as directors/equal shareholders and a third brother who is not a director or shareholder of the company (non are employees of the company).
Between them they own about 100 acres of farmland which has been rented to the trading company at a nominal rent for about 20 years.
The land may be sold in the near future and they want to roll the gain over into new land.
The third brother's history would not as i see it qualify for rollover. The land sale may take some two or three years because it is linked to planning permission. Would he qualify for Rollover if the other brothers were to gift him/sell him 2.5% each of the share capital in the trading company and would the Rollover then be restricted in any way because of the short time he has held the shares?
My reading is that the 5% shareholding is at point of sale and acquisition (of new land to be used by same company) and also normally Rollover is restricted to period of use in the trade. Do the two combine to give a reduced but qualifying entitlement to Rollover or is time not factor?