Entrepreneurs’ Relief

A hugely valuable relief on the disposal of business assets

Entrepreneurs’ Relief continues to be a hugely valuable Capital Gains Tax (CGT) relief available on the disposal of qualifying business assets and shares. Legislation can be complex and good planning is needed if the pitfalls are to be avoided.

 Where the conditions are met, Entrepreneurs’ Relief reduces the amount of CGT payable on a disposal of qualifying business assets to just 10%, up to a lifetime maximum of £10m of capital gains. Entrepreneurs’ Relief can apply to the gift or sale of business assets, shares or personal assets owned by partners or shareholders withdrawing from a business.

Disposals often fail to qualify for Entrepreneurs’ Relief simply because professional advice was not sought in advance of the transaction. Some of the problems can be rectified if they come to light before it is too late.

At Essendon Tax, our review service will flag up problem areas and include suggestions for how you can get into a better position to claim Entrepreneurs’ Relief.