Mr A holds 70% of shares in a trading company, of which he is a Director. He is looking to sell these shares asap.
These shares were purchased in two tranches, one tranch (40%) being over a year ago and the other (30%) three months ago.
I understand that these shares form a pool, for costing purposes. How would it work with regard to Entrepeneurs relief as the earlier tranch qualifies and the latter doesn't.
Would he apportion his gain based on 40% being at 10% then 30% being at 18%/28%?
What are the matching rules, for instance if he were to sell 40% would it be on a FIFO basis, so all of this gain would qualify for ER?