Entrepreneurs’ relief: "Reform urgently required" | AccountingWEB

Entrepreneurs’ relief: "Reform urgently required"

That's the view of Smith & Williamson's national tax director Richard Mannion.

He commented: "While these rules are intended to support and encourage entrepreneurs, the rules are very tightly drawn and many individuals who may have spent years building up a business can find they miss out when they sell.  Broadly, to qualify for the 10% rate of CGT on sale of company shares (rather than paying 28% CGT), individuals must own 5% of the total shares and have been an employee or office holder (director, company secretary or similar) for the year prior to sale. The OTS report highlights the problems that the 5% shareholding requirement produces and I am hopeful that a proper review of entrepreneurs’ relief will be announced."

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