Readers' forum : Mr and Mrs

My husband-and-wife clients are contemplating selling their company. The shareholding is split 60% in favour of the husband who is a director and 40% in favour of the wife who is company secretary. The wife does not work in the company and does not receive a salary.

The nature of the business is complex and one of the terms of the sale is that the director would be required to stay on for a further year as a consultant to offer his technical experience. I understand that they could meet the requirements for entrepreneurs’ relief and thus pay capital gains tax of 10% but I should be grateful for clarification on a number of issues.

• My first question is whether the wife is entitled to entrepreneurs’ relief as a shareholder of more than one year and as an officer of the company?
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