ER

Question 1

Business qualify for ER?

Answer 1

Must be an employee or director of the company and held at least 5% of the voting shares.
She must have owed the assets for at least one year before disposal.
Providing the company is a trading business.
Companies with more than 20% non trading assets such as investment/ assets will generally fail to qualify as a trading company.
Max 10m at 10%

Question 2

What assets of the business qualify for ER?

Answer 2

Relief is only available in respect of gains arising from the sale of the assets used in the business (premises, machinery, stock and goodwill).
Any chargeable gains arising from the investments are excluded.
Any property owned but not used in the business are excluded.

Question 3

Entrepreneurs Relief lifetime gains?

Answer 3

from 6th April 2011 - 10m lifetime gains at 10%

Normal CGT post 10m

Question 4

Investors relief lifetime gains

Answer 4

from 16th March 2016 -10m lifetime gains at 10%.
Shares must be newly issued by the company past 16 March 2016.
To qualify for relief, shares must be held for a continuous period of 3 years starting on or after 6th April 2016. Earliest that investors relief will be available is 2019/20 tax year.