The wife intends to sell her investment property to their company as part of her phased retirement. The property has always been used as the company’s business premises so E.R. should be available.
One of the conditions for her capital gain to qualify for ER as an associated disposal, is that the sale must be part of a wider disposal of the business. In order to satisfy this condition, she intends to sell 10% of her shares in the company for now, and the rest next year.
Would a share buyback still count if their company buys back 10% of her shares? Her husband intends to remain as majority shareholder for a couple more years before he retires.