Entrepreneurs’ relief can allow you to pay a lower rate of capital gains tax (CGT) when you sell your business. If Entrepreneurs’ relief applies, the rate of CGT is reduced to 10%. Individuals have a lifetime limit of £1 million of gains for which Entrepreneurs’ relief can be claimed.
It is vital, for Entrepreneurs’ relief to apply, that the qualifying conditions are met. Given the substantial tax savings involved, it is vital that you organise your business and its sale so that you qualify for Entrepreneurs’ relief.
Many people assume they are entitled to Entrepreneurs’ relief however there are often issues that arise that put this into doubt. Not qualifying for Entrepreneurs’ relief, when you think you do, can be an expensive mistake. Nine times out of ten there are no issues but you have to make sure that you’re not the one in ten. We spend a lot of our time advising clients on their eligibility for Entrepreneurs’ relief as well as planning ahead to ensure that the conditions are met where they can be.
If you’re looking to sell your business talk to us today to make sure you’re not the one in ten.
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