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Can you get entrepreneurs relief twice

Can you get entrepreneurs relief twice

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When you transfer a commercial building into a Limited Company then ER is generally available. If the Ltd Co is then eventually sold can you also claim ER on the increase in the value of shares? 

For example property is transferred into a new Ltd Co for 100,000 showing a gain against original cost of 50,000. With ER the CGT would be 5,000. There is also 20,000 of goodwill transferred in on which 4,000 of CGT is paid (at 20%). No other assets at this stage. 5 years later the company has grown in value by 130,000 to 250,000 and is sold for 250,000. If all the conditions are met could the gain of 130,000 also qualify for ER and be taxed at 10%?

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By Matrix
01st May 2018 22:57

Yes the lifetime limit is £10m so there is nothing to stop you getting entrepreneur's relief twice or more, provided, as you say, the conditions have been met. I would have another look at the conditions though.

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By Chipette
02nd May 2018 07:18

Is the new Ltd co a trading company for ER purposes?

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By Openhouse
02nd May 2018 13:28

Yes it is a trading company

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By petergamston
04th May 2018 23:36

How about five times? Completely different situation - I own 27% equity in a company looking at a MBO but lacking the resources to do it in one 'hit'. The total value is well under the lifetime limit. If I remain a non-exec director and the company keeps trading could I sell in five annual tranches, say 4 of 5% and a final of 7% such that the holding remains >5% throughout.

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