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The taxpayer asks whether keeping the proceeds from the sale of inherited shares in a current account for ten years satisfies the requirement to maintain the family business reduction. The DGT responds that it does not, as funds in a current account are not considered immobilised and do not allow for verification of compliance with the requirement.
Taxpayers planning to sell shares subject to family business tax reductions must ensure the proceeds are reinvested in assets that meet the immobilisation requirements, rather than simply holding them in liquid bank accounts.
The tax team reviews your specific situation.
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