Entrepreneur relief

Entrepreneur relief

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So, if I realised a gain of £209,600 no using last years rules I would (assuming I was a higher rate tax payer and it was a business asset held for enough years) have paid £20,000 in tax.

I sell the same asset today and end up paying tax on (5/9 x 209,600) - 9,600 at 18%. So £19,232! So the Revenue have compensated us by giving us a smaller tax bill than under the old rules! I feel there must be a catch...

Have I missed something or were they visited by several ghosts?
Gertrude Stein

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By User deleted
21st Aug 2008 16:05

Oooooooops!
Oooooops! I took the AE off before taper in my first example... Darn it!

So £17,120 (it's gone up then!)

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By User deleted
21st Aug 2008 15:49

actually you are still worse off...
the calc based on the old taper rules would show a gain of 209,600 which after taper would leave 25% chargeable, i.e. 52,400, less exemption of 9,600 leaves 42,800 liable to tax at 40% - CGT of 17,120.

(i think.......?!)

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