ARTICLE · 01 SEPTEMBER 2015

Entrepreneurs' Relief - August 2015

Smith & Williamson

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Entrepreneurs' relief (ER) can reduce the rate of UK capital gains tax (CGT) to 10% on some disposals.

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Smith & Williamson

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

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 of any disposal.

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.

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