Entrepreneurs' Relief
Encyclopedia
In the United Kingdom
, entrepreneurs selling their business (technically "qualifying assets") can claim Entrepreneurs' Relief. This is a lifetime allowance of £10,000,000 of gain that will be taxed
at a reduced rate of 10%. To be eligible, a shareholder must have a 5% or more shareholding, and have been involved for a year or more with a company as an employee or director. Capital distributions from a Limited company can occur as a result of a Member's Voluntary Liquidation, and resulting profits are subject to CGT. Return of share capital following a resolution at the AGM is not classed as capital gains.
Entrepreneurs' Relief was raised to £2 million in the March 2010 budget. and then to £5 million 3 months later by the new Conservative/Liberal coalition government. In the March 2011 budget it was raised to £10m.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, entrepreneurs selling their business (technically "qualifying assets") can claim Entrepreneurs' Relief. This is a lifetime allowance of £10,000,000 of gain that will be taxed
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
at a reduced rate of 10%. To be eligible, a shareholder must have a 5% or more shareholding, and have been involved for a year or more with a company as an employee or director. Capital distributions from a Limited company can occur as a result of a Member's Voluntary Liquidation, and resulting profits are subject to CGT. Return of share capital following a resolution at the AGM is not classed as capital gains.
Entrepreneurs' Relief was raised to £2 million in the March 2010 budget. and then to £5 million 3 months later by the new Conservative/Liberal coalition government. In the March 2011 budget it was raised to £10m.
External links
- Relief on disposal of a business HM Revenue & Customs