Entrepreneurs' relief is available for gains realised by individuals, and the trustees of certain settlements, on the disposal of qualifying business assets. The entrepreneurs’ relief reduces the rate of capital gains tax payable on the disposal of the above assets from 18% or 28% to 10%. The maximum lifetime limit on the amount of entrepreneurs’ relief that can be claimed on qualifying gains by an individual is currently £10 million.
As with any tax reliefs, there are a number of detailed conditions which must be met by the individual to qualify for this relief and is it therefore important to ensure these conditions are met, particularly given the significant tax savings that can be made.
Whatever your circumstances, Moore Stephens can advise you on how best to maximise the benefit of this valuable relief. Our factsheet on entrepreneurs' relief has recently been revised and is available here.