Introduction
Entrepreneurs' relief (ER) can reduce the rate of UK capital
gains tax (CGT) to 10% on some disposals. The rules are complex and
fairly restrictive. We can help you plan so as not to undermine
overall tax or commercial efficiency.
Background
While ER is similar in effect to taper relief (its predecessor)
it is generally much more restrictive in its application. In
addition there is a lifetime cap on the value of qualifying gains
that can benefit from ER. For a disposal to qualify, it must come
within one of three tightly drawn categories and the qualifying
conditions have to be met continuously for a year in advance.
ER can only be claimed by individuals or through a joint claim
made by a qualifying beneficiary and the trustees of a life
interest trust. Corporate entities cannot claim ER.
