Definition of 'trading' for entrepeneur's relief

[tmoss]

Hi there,

Is there an easy to digest definition of what constitutes a 'trading company' for the purpose of Entrepreneurs Relief? I've been receiving some conflicting advise on whether or not my situation would apply. I've had a limited company open for over a year, but have only been submitting invoices for the first 6 months. I left the company open as I was advised that I could claim entrepeneur's relief after 12 months, but am now being told that it won't apply as I only have 6 months of invoices to demonstrate the trading status. If I'm not eligble I'm wondering if I would be better off taking all the proceeds out as dividends as I'll be paying CGT anyway.

Any help greatly appreciated.

regards, tim

[Lambs]

T,

Please see HMRC's Capital Gains Manual, starting at

CG64055, and in particular at 60 / 65 (the following pages)

https://www.gov.uk/hmrc-internal-manual ... al/cg64055

Regards,

Lambs