New queries, issue 4507

Corporate partner

Advice to preserve entrepreneurs’ relief for corporate partners is needed

The new definition of trading company (effective from 18 March 2015) moves the goal posts substantially for corporate partners. Craig Simpson’s Narrowing the angles is particularly pertinent.

Presumably interests in corporate partner companies (mainly shares) will no longer attract entrepreneurs’ relief (on disposal) for capital gains tax and will not attract business property relief for inheritance tax purposes.

Although it is early days yet for advisers what actions – if any – might be taken in the future to reinstate the trading position? Is it simply a matter of each partnership company member starting a trade as well or would some other mechanism of incorporation of the full original business succeed?

Are any other routes possible?

I am concerned about the sale of the business goodwill which is held within the corporate...