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Entrepreneurs' Relief - ongoing involvement in the

Date Protection Officer role

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Director of company wishes to retire & has sold his business & wishes to claim ER. He is no longer involved in the business.

The new owners (his sons) are not familiar with GDPR rules but understand they can outsource the role of Data Protection Officer to a third party - which they have done - to their Dad.  Is this likely to have an impact on his eligibility to ER?

 

 

 

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By Accountant A
24th Oct 2019 14:18

I'm not familiar with the conditions for ER. Which one(s) are you specifically concerned about?

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By Clinton Lee
24th Oct 2019 17:03

Short answer: No.

Entrepreneurs often stay on, post-completion, on a consultancy basis. As long as those consultancy fees are not added on to the sale price (to benefit from the lower rate of CGT), that's fine.

In fact, by the time this CGT becomes payable (using ER) the dad will probably have paid PAYE/NI on the outsourced work (assuming he was employed to do it). If he's taking this work on in a different capacity - sole trader / new limited company etc - then that's where these payments would be taxed.

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