Business Reliefs

Question 1

Entrepreneurs relief (CGT)

Answer 1

-Reduces CGT on disposal of shares in a business
-Simons case 20-10%
-must be 5% shareholder and employed
If he assigns to grace because she is not a employee relief won’t work for her
-no limit on amount of times but up to first £10million of lifetime gains
-must be claimed within 2years of disposal of shares

Question 2

Business relief (IHT)

Answer 2

IHT relief 100% on xfer of business

Simon would qualify as held 2 years preceding xfer of business