Commentary

I7.342 APR and buy and sell agreements

IHT, trusts and estates

I7.342 APR and buy and sell agreements

I7.342 APR and buy and sell agreements

'Buy and sell' agreements are agreements entered into by the partners of a partnership or the shareholder directors of a company. The purpose of the agreement is to provide that, in the event of the death before retirement of any of them, the deceased's personal representatives are obliged to sell, and the surviving partners or directors are obliged to buy, the deceased's interest in the partnership or shares. The funds for the purchase are often provided for by means of a life assurance policy (see also I9.481).

HMRC's view is likely to be that

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