Not so equal

My client was an equal partner in a business until six months ago when he bought out his partner (A). Now he wishes to take on a new partner (B) selling a 25% interest in the business to him. The sale is within the new entrepreneurs' relief regime but is it possible to match the 25% disposal with the original 50% of the partnership which was owned for more than 12 months or must it be matched with the 50% purchased from partner A?

The available guidance does not appear to cover this scenario so I am stuck on the appropriate advice to give the client.

Therefore I would welcome readers' interpretation of the new legislation.

Query 17 249 – Wey Wise.

Reply by Nicks:

Having read FA 2008 Sch 3 I can find no reference to any 'matching rules' as described...