Entrepreneurs Tax Relief

[ImNOTGrumpy]

Posting here under a different name, but long time member and occasional poster.

So we are potentially selling the shares in our business.

Question before I discuss with my Accountants/Solicitors

Does the Entrepreneurs Tax Relief of 10% apply to the whole sale amount or is it the net amount after broker/sales costs?

Many thanks on advance.

Edited by ImNOTGrumpy on Monday 25th February 20:43

[anonymous-user]

Costs can generally be deducted

See here for a brief overview

https://www.gov.uk/capital-gains-tax-businesses/wo...

[ImNOTGrumpy]

Thanks

[robsdesk]

I've just (as in got the final distribution last week) done this via mvlonline, their costs were paid directly from the company, after the final accounts were done - there's an allowance for liquidation costs.

Really pleased with the process, took about 4 months end to end, had a 75% distribution about a month in, the rest once HMRC signed off on it.

[PugwasHDJ80]

Just watch for the qualifying period,

For transactions that will complete after April 5th 2019 you must have held shares for two years with 5% of the voting rights. Just had to delay a client's marketing because of it 😫😮

[Eric Mc]

Entrepreneurs Tax Relief is part of the overall rules relating to Capital Gains Tax.

One of the basic precepts in Capital Gains Tax is that the taxable is gain is computed after all relevant and allowable costs related to the disposal are deducted. These costs usually consist of professional, fees, agent's fees, commissions, admin charges etc.

[Insurancejon]

PugwasHDJ80 said:

Just watch for the qualifying period,

For transactions that will complete after April 5th 2019 you must have held shares for two years with 5% of the voting rights. Just had to delay a client's marketing because of it ????

We've just had to delay an acquisition because of it...grrrrrr

[anonymous-user]

PugwasHDJ80 said:

Just watch for the qualifying period,

For transactions that will complete after April 5th 2019 you must have held shares for two years with 5% of the voting rights. Just had to delay a client's marketing because of it ????

Wasn't that always the case?

[Ean218]

desolate said:

Wasn't that always the case?

I thought it was too.

[JapanRed]

Interesting topic. I know that no one has a crystal ball but for those in the know, what are the chances of entrepreneurs relief being scrapped in the next 5 years or so?

This is the route I’m looking to take with my own company once I’ve accumulated enough cash to live comfortably on.

[Eric Mc]

JapanRed said:

Interesting topic. I know that no one has a crystal ball but for those in the know, what are the chances of entrepreneurs relief being scrapped in the next 5 years or so?

This is the route I’m looking to take with my own company once I’ve accumulated enough cash to live comfortably on.

Who knows.

It has been around in various forms for decades (it was originally called "Retirement Relief") and no Chancellor, so far, has seen fit to get rid of it completely.

[ImNOTGrumpy]

JapanRed said:

This is the route I’m looking to take with my own company once I’ve accumulated enough cash to live comfortably on.

Interesting comment JapanRed that’s the $64000 question how much is enough ? I’ve been deliberating this for a few months now.

[Delboylee]

Ean218 said:

I thought it was too.

It was previously one year ownership

5% was the same

[PugwasHDJ80]

Insurancejon said:

PugwasHDJ80 said:

Just watch for the qualifying period,

For transactions that will complete after April 5th 2019 you must have held shares for two years with 5% of the voting rights. Just had to delay a client's marketing because of it ????

We've just had to delay an acquisition because of it...grrrrrr

You REALLY shouldn't need to delay the transaction, there are two routes that can be used in extremis to ensure a transaction takes place. The advisors on both sides should be able to solve this without causing a delay.

[Alpinestars]

Delboylee said:

Ean218 said:

I thought it was too.

It was previously one year ownership

5% was the same

The 5% test is different after 5 April 2019.