Business reliefs

Question 1

when can individuals claim entrepreneurs relief

Answer 1

when they dispose of a business or a significant part of a business

Question 2

what does the relief cover

Answer 2

first 10 million of chargeable gains on the disposal of

the whole or part of a business on assets, not investments

the disposal of shares in a trading company where an individual has at least 5% shareholding and is also an employee

Question 3

what kind of limit is the 10 million

Answer 3

a lifetime limit

Question 4

what are gains qualifying for entrepreneurs relief taxed at

Answer 4

10% regardless of an individuals taxable income

Question 5

how long must the business or shares be owned for

Answer 5

2 years prior to disposal

Question 6

when must be claims be made by

Answer 6

first anniversary of 31 Jan following the year of disposal

Question 7

when is investors relief available

Answer 7

on the disposal of shares in an unlisted trading company

Question 8

what does investors relief mean

Answer 8

gains are taxed at 10%

Question 9

what are the rules for the shares

Answer 9

they must be issued directly to the taxpayer on or after 16 March 2016 and held for 3 years

Question 10

what are the conditions of gift relief

Answer 10

disposal is made to an individual who is a UK resident