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Where Taxpayers and Advisers Meet

Entrepreneurs relief

witty
Posts:8
Joined:Wed Aug 06, 2008 3:30 pm
Entrepreneurs relief

Postby witty » Thu Jul 08, 2010 9:42 am

Hi

My understanding is that you have to own at least 5% of a company to qualify for entrepreneurs relief, and that the lifetime disposal limit has now been increased to 5 million.

If for example, I owned 6% of a company and decided to dispose of 2% in this tax year I assume I qualify for the relief. However what happens on subsequent disposals given my remaining shareholding is now below the 5% qualifying level (i.e. I now own 4%).

Do I still qualify or will I need to disposal of my entire shareholding in one go to get the benefit of the reduced CGT rate?

mullet
Posts:3242
Joined:Fri Nov 06, 2009 9:26 am

Re: Entrepreneurs relief

Postby mullet » Thu Jul 08, 2010 4:45 pm

You need to satisfy the qualifying conditions over a 12 month period, so if you end up having less than 5% of the voting rights then a subsequent disposal would not qualify for ER.


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