Hi All,
Scenario:
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?
Many thanks
Related resources
Replies (3)
Please login or register to join the discussion.
because they havent been held for twelve months? Although thinking about it, I think you've answered my question.. he has held over 5% of shares for longer than 12 months, so all shares will qualify. Doh!
Apologies ...
... for teasing you. I suspected that was your thinking, but I find that if you work things out for yourself, it's more likely to stick in the mind for next time :)