Can a company who owns shares in another company claim entrepreneurs relief - my client is insisting that we can but looking at the wording online this only applies to individuals?
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Entrepreneurs relief is a CGT relief.
Companies don't pay CGT.
No tax, no relief.
Yes - tell your client that he doesn't get Entrepreneur's Relief but the upside is that there's no CGT.
Entrepreneurs relief is a CGT relief.
Companies don't pay CGT.
No tax, no relief.
What's "a CGT relief"? Why use terms that don't exist in law to answer a question that, for once, makes reference to the law?
The OP is spot on - ER, per legislation, does not apply because it's a relief for individuals (and Trustees by extension); the legislation does not say it's "a CGT relief".
That's a bit pedantic, isn't it? It's a relief defined in the Taxation of Chargeable Gains Act as giving a lower rate of capital gains tax, to say that's fundamentally different to calling it a CGT relief is a bit of a stretch, no?
Not really. It's a relief provided under TCGA. TCGA applies to companies.
You should be pointing out the pedantry in replies like "it's a CGT relief, companies don't pay CGT".
No, I mean it literally says in the first line of the bit of legislation in which it's defined "This Chapter provides for a lower rate of capital gains tax in respect of qualifying business disposals (to be known as “entrepreneurs’ relief”)." and you're asserting that and "CGT relief" are two different things.
I don't think it's pedantic to point out Entrepreneurs Relief doesn't apply to companies because it relates to a tax that doesn't apply to companies. Indeed it's just answering the original question.
I don't feel strongly enough to disagree.
I do think that Tim's oft-repeated observation that "companies don't pay CGT", whilst correct, is - maybe just occasionally - intended to misguide, rather than to assist. (Lion's contribution was equally unhelpful.) As you (and Tim) well know, TCGA does apply to companies. And it's not s169H(1) that stops ER applying to companies.
[Being a natural born pedant, though, what does s169H(1) actually mean? Read it again, carefully. (I know it's two half sentences pushed together, due to the history of the relief, but, really, isn't it now a nonsense? Just as well it doesn't do anything!)]
You're going to have to explain that one. It might be misleading by glossing over the equivalent for companies, but it's definitely not wrong.
TCGA applies to companies, CGT does not.
CGT applies to non-resident companies (except in relation to assets used for the purposes of a trade carried on through a UK permanent establishment) up to 2018/19.
Non-resident companies were liable to CGT on gains on UK residential property up to 2018/19. From 2019/20 they are liable to corporation tax on their chargeable gains on UK real property interests (including shares in other companies that have such interests).
Dammit - turns out I'm not pedantic enough!! :-)
(Sorry, that was meant as a reply to CTA.)
My thoughts.
The OP could start here:
https://www.accaglobal.com/uk/en/technical-activities/technical-resource...