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

Statutory Audit
09/10/2017 - More...
Congratulations to our Director James...

Bereavement leave for parents who lose a child
19/10/2017 - More...
The Parental Bereavement (Leave and Pay)...

Managing staff experiencing mental ill health
18/10/2017 - More...
Acas has launched new guidance to help...

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

 

What qualifies for 10% Entrepreneurs’ Relief?
10/08/2017

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 rather than the normal main rate of 20%. This can significantly reduce the amount of CGT due.

When the relief was first introduced there was a lifetime limit of £1 million for gains. This was increased to £2 million from 6 April 2010, to £5 million from 23 June 2010 and to a generous £10 million from 6 April 2011.

The relief is available to individuals as well as to some trustees of settlements. To qualify, the individual should be either an officer or employee of the company, own at least 5% of the company and have at least 5% of the voting rights. There are also other qualifying conditions that must be met.

Entrepreneurs' Relief is not available to companies or personal representatives of deceased persons or in relation to a trust where the entire trust is a discretionary settlement. The limit applies to all qualifying gains, whatever the year in which they arose. 

The lifetime limit means that individuals can qualify for the relief more than once, subject to the over-riding condition that 20% CGT will be charged once the total amount of qualifying capital gains exceed £10 million.

Planning note:

Entrepreneurs' Relief is an important and valuable tax relief for many business owners. There is also a sister relief called Investor’s Relief which has a separate £10 million lifetime cap. This is useful for investors who do not meet the officer or employee requirement for Entrepreneurs' Relief.

We would advise readers who are considering a significant business disposal to take professional advice before signing on the dotted line. Positive tax planning, especially in these circumstances, can only be achieved in advance. The timing and structure of deals can make all the difference to maximising post-tax sales gains. 


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