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06 August 2008
Entrepreneurs' relief and the sale of a share of a business
My client was an equal partner in a business until six months ago when he bought out his partner (A). Now he wishes to take on a new partner (B) selling a 25% interest in the business to him. The sale is within the new entrepreneurs' relief regime but is it possible to match the 25% disposal with the original 50% of the partnership which was owned for more than 12 months or must it be matched with the 50% purchased from partner A?
The available guidance does not appear to cover this scenario so I am stuck on the appropriate advice to give the client.
Therefore I would welcome readers' interpretation of the new legislation.
Query 17 249 – Wey Wise.
Reply by Nicks:
Having read FA 2008 Sch 3 I can find no reference to any 'matching rules' as...
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