Entrepreneurs Relief

Tax relief that can be claimed if selling shares/selling your business. Enables you to reduce capital gains tax on profits. Will be at a reduced 10% as opposed to 20%.
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Eligibility requirements:
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• A sole trader, limited company director or shareholder owning at least 5% of the business, the relief can be claimed
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• If the shares were bought through the scheme after 5th April 2013
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• Shares must be owned for at least 2yrs prior to selling
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• If business no longer trades, the relief can be claimed if shares are sold within 3yrs
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• A trustee might qualify, would have to confirm status with HMRC
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How to claim the relief:
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Through Self Assessment Tax return or filling in section A of the entrepreneurs’ relief helpsheet. Can be claimed as many times as you want, upto £1 million over your lifetime, if you sold before 11th March 2020, upto £10 million can be claimed over lifetime.

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