Hi Alan I have a client who runs a professional services business through a limited company. He owns 99% of the shares, his wife owns 1% and both are directors. His wife used to do some work in the business (mainly bookkeeping and admin work) and received a salary for that work. Unfortunately she became ill and was diagnosed with multiple sclerosis and can no longer work in the business. She has applied for and is receiving Invalidity Pension. My question relates to Section 201(2)(a) of the TCA 1997. As her employment has ceased would the company be able to avail of this section to make a tax free lump sum payment of up to €200,000 to her?
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