Readers’ forum: Running scared

My client has built up a successful company and is looking to sell it next year for several million pounds – there is negligible base cost.

He has based his plans on the availability of capital gains tax entrepreneurs’ relief and he meets all of the qualifying conditions. He is now very concerned that the relief may be in doubt and has asked me whether there is anything he can do this tax year to preserve his entitlement.

If he were to set up a trust in which he was a beneficiary a transfer to that trust would be a market value disposal on which entrepreneurs’ relief would be due and so the trustees would take over the shares at current market value. Any gain on a subsequent disposal of the shares would depend on the tax rules in place at that...