Q. My father resigned as a director of our family business in March, and started to draw his pension, but he retained 15% of the shares in the company. It seems likely that company will be sold later this year. Will my father get entrepreneurs' relief on any the gain he makes on his shares?

A. Unfortunately not. To qualify for entrepreneurs' relief the shareholder must be an employee or officer (director or company secretary) for the full 12 months that ends with the sale of the shares, or the date the company ceases to trade. If you reappoint your father as a director (he doesn't have to get paid for that role) and then wait for 12 months before the sale, he should qualify for entrepreneurs' relief.