Poole Office: 01202 678555

Wimborne Office: 01202 849169

  • slider-1.jpg
  • slider-2.jpg
  • slider-3.jpg
  • slider-4.jpg

Request a Call Back

Please enter your name and phone number

Latest News

Hill Osborne is Recruiting
17/07/2018 - More...
Full or part time accounts assistant...

New toolkit on handling domestic abuse
16/07/2018 - More...
Public Health England (PHE) and Business...

Rent-a-room relief to be modified
11/07/2018 - More...
The publication of the draft Finance...

Search News

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

»Sign up for the Newsletter
» Login

 

Technical change to Entrepreneurs’ Relief
11/07/2018

Entrepreneurs' Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where Entrepreneurs' Relief is available CGT of 10% is payable in place of the standard rate. There are a number of qualifying conditions that must be met in order to qualify for the relief. One of these conditions is that an individual’s shareholding must make up at least 5% of the shares.

This means that entitlement to Entrepreneurs' Relief is lost where there is a dilution below the 5% qualifying level as a result of a new share issue. In some cases, this rule can act as a disincentive for entrepreneurs to accept external investment.

The government has therefore decided to make changes to the legislation as part of the Finance Bill 2018-19 to protect entrepreneurs whose shareholding is 'diluted' below the 5% threshold. This measure, which was first announced at Budget 2017 will have effect for shares held at the time of fundraising events to raise additional equity funds which take place on or after 6 April 2019.

There is a lifetime Entrepreneurs' Relief limit of £10 million.


Contact Us

Poole Office

Tower House, Parkstone Road
Poole, Dorset
BH15 2JH
Tel: 01202 678555

This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Registration No: O7430971
VAT Registration No.107585703

Wimborne Office

Beaufort House, 2 Cornmarket Court
Wimborne
BH21 1JL
Tel: 01202 849169

Membership

ICAEW-White

Save