A client is selling shares in a company and plans to claim entrepreneurs’ relief (ER). As far as I am aware, if an ‘associated person’ owns a controlling interest in the company thereafter, ER may not be claimed. My question is, outside of the client’s spouse, who would be considered an associated person under the ER rules?

Arthur Weller replies:
I do not know of the rule you are referring to (i.e. that if an associated person owns a controlling interest in the company after the sale, ER cannot be claimed). I suspect that you are thinking of another tax relief.