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26 August 2015
Will entrepreneurs’ relief be available if a company receives commission income?
Our client company has been carrying on a trading business for many years. The director shareholders are getting older and they have recently received a financially attractive offer which would enable them to play a less active role while still receiving a regular income from their business.
Another company that is in a similar business – completely unrelated to our client – has offered to buy our client company’s customer list. The intention is that the purchaser will continue to provide services to the clients with the hope of selling additional products and services to them.
As well as an initial purchase price our client company will continue to receive income in commission from the purchaser company.
Our concern is the implications for capital gains tax entrepreneurs’ relief. If our clients decide...
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