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Could entrepreneurs’ relief apply to shares in a property-owning business?
A couple owned farmland that they ceased to farm. They started to rent it out in about 2000. Because the land was on the outskirts of a city there was always the chance that it could be suitable for development.
In 2003 they transferred the land to a newly formed limited company. Capital gains tax was paid by them on the disposal of the property which at that time was agricultural land at market value.
They gifted some shares to their children and to trusts for the benefit of their grandchildren. One of the couple died in 2010 and the majority of their shares passed to their children who are mostly in their fifties. The children have all been directors since 2010. The land has continued to be rented to various agricultural tenants.
Through agents the directors found a development company that was interested in the...
