Entrepreneurs' Relief: What you need to know
Entrepreneurs' Relief is a capital gains tax relief available to those selling or giving away their business.
Tolley Guidance has provided a digest of tips to help you get to grips with this key business relief.
Entrepreneurs' Relief reduced the amount of CGT paid on a disposal of qualifying business assets on or after 6 April 2008.
This relief will be available to:
- Sole traders and partners selling or gifting the whole or part of their business
- Company directors and employees holding at least 5% of ordinary shares and voting rights in a qualifying company who will share or gift all or part of their shareholding
In 2010, the relief changed to qualifying gains arising from 23 June 2010 being taxed at a flat rate of 10%, with the previous need to reduce the gain by 4/9ths being removed.