I am selling my shares in my company and resigning due to a dispute with my partner. I am a 50% shareholder, and the business will be continuing. However, I want to incorporate a new limited company of my own. Will I pay 10% or 20% on my gains?  

Arthur Weller replies: 

I presume you are selling out to your fellow partner, and not to the company because a company purchase of own shares has its own rules - see HMRC’s Company Taxation manual at CTM17500. You should be eligible for the 10% business asset disposal relief (BADR) (formerly entrepreneurs’ relief) on the capital gain, assuming you satisfy the BADR rules. You state that you intend to start up a new business. There are restrictions on claiming a capital gains transaction if someone does the same kind of business after the transaction. But those restrictions only apply if the first company is wound up - which is not the case here. So, you should be okay. See CTM36300.