Business Asset Disposal Relief — share disposal conditions

A client owns 4% of the ordinary shares in a trading company and has been a part-time employee of it for three years. The company carries on a genuine trade and is not a personal investment vehicle. In July 2026 she sells all of her shares, realising a substantial chargeable gain. She has held the shares and the employment throughout the three-year period. She asks whether her gain will qualify for Business Asset Disposal Relief so that it is taxed at the reduced rate. Which of the following best explains the position?