CGT Disposal after Emergency Budget

CGT Disposal after Emergency Budget

Didn't find your answer?

Client Mr B owns 100% of share capital in Company XYZ LTD. Company is being dissolved and the £100,000 reserves are being distributed as a Capital Distribution.

Mr B is a higher rate tax payer.

The distribution date is after the emergency budget date, therefore at what rate is CGT charged on the disposal? 10% / 18% / 28% or a mixture?

The disposal does qualify for Entrepreneurs Relief. Do you still make a 4/9ths deduction?

Replies (1)

Please login or register to join the discussion.

avatar
By ACDWebb
30th Jul 2010 14:58

Have a read of Budget Note 20

HERE and the examples on pages 3 & 4

If after 22 June then you do not apply 4/9th but charge the qualifying part @ 10%

Thanks (0)