Readers' forum : Teamwork

I act on behalf of several corporate clients and their directors and shareholders and am thinking of recommending disincorporation using the relief that is available until March 2018. The clients’ circumstances are all very similar in that the only chargeable asset owned by the companies is goodwill worth less than £100 000. The companies are husband-and-wife-owned and trade from premises owned by the shareholder directors. Rents have been kept to a minimum so that entrepreneurs’ relief should be available on the chargeable gains that will arise on the properties when the businesses are sold.

I envisage that a husband-and-wife partnership will take over each company’s trade. If the businesses were sold after 12 months would all the property gains since the original acquisition be eligible for capital gains tax entrepreneurs’ relief?

Query 19 031 – Planner.

Reply by Steve Kesby

Planner’s query raises an interesting point....