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entrepreneurs relief - one year rule

entrepreneurs relief - one year rule

My client has traded as an electrician for a number of years. He incorporated the business in November 2009 (he owned 100%) and then sold 25% of the shares in May 2010 to a third party.  Can he claim entrepreneur's relief?  I am concerned about the one year rule.  Can you amalgamate the ownership as a sole trader and as a shareholder.  I know that he could claim the relief at the point that he incorporated as opposed to claiming incorporation relief but he doesn't want to do this.  I have looked at the HMRC guidance but can't see that it addresses the point specifically.  Any help gratefully received.


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13th Oct 2010 11:00

Elect to disapply or take the hit!

Sorry, the pre-incorporation period doesn't count towards the one year requirement.


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