Readers' forum : Parting company

My associate (A) has a controlling interest in a private limited company and has an offer to sell the entire company before his proposed retirement. He does not have enough of a controlling interest to drag along a minority shareholder (B).

If the sale proceeds A will realise a gain of about £500 000 that will be eligible for entrepreneurs’ relief. B is willing to sell his shares to A but only at a premium which will permit A to complete the sale to an unrelated third party.

If B sells his shares immediately before the company sale A will realise a loss on just these shares of the difference between what he pays B and what he receives from the unrelated third party on acquisition.

My interpretation of the sale of shares by B to A is that because they have been held for less than...