I am a co-founder and owner of 50% of the shares in Ruby Ltd. My co-founder Damian owns the other 50% but we cannot agree on our business strategy. Unless he agrees to resign as director and significantly reduce his shareholding I fear this will mean the end of the business. I cannot afford to buy Damian out myself but he has agreed to sell his shares back to the company over three years if he can pay 10% CGT on his gain. My accountant tells me HMRC may not agree he is entitled to this rate.
Answer
Eligibility for capital treatment
The first thing to do is establish whether Damian is eligible for capital treatment (and if the conditions are satisfied the...
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I am a co-founder and owner of 50% of the shares in Ruby Ltd. My co-founder Damian owns the other 50% but we cannot agree on our business strategy. Unless he agrees to resign as director and significantly reduce his shareholding I fear this will mean the end of the business. I cannot afford to buy Damian out myself but he has agreed to sell his shares back to the company over three years if he can pay 10% CGT on his gain. My accountant tells me HMRC may not agree he is entitled to this rate.
Answer
Eligibility for capital treatment
The first thing to do is establish whether Damian is eligible for capital treatment (and if the conditions are satisfied the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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