The Entrepreneurs’ Relief is a tax relief that you can claim if you’re selling shares or the whole of your business. Since 6th April 2020, it was renamed the Business Asset Disposal Relief. Claiming the tax relief enables you to reduce the Capital Gains Tax (CGT) that you owe on your profits. You can pay CGT at a reduced rate of 10%, rather than up to 20%.
There are a few ways to claim the Business Asset Disposal Relief:
You can claim as many times as you want, up to a total of £1 million over your lifetime. If you sold up before 11th March 2020, you can claim up to £10 million over your lifetime.
Take a look at the below table. These are the deadlines to be aware of when it comes to claiming Business Asset Disposal Relief:
|Tax year ended
|5th April (2021/22 tax year)
|31st January 2024
|5th April (2020/21 tax year)
|31st January 2023
|5th April (2019/20 tax year)
|31st January 2022
You may qualify for Entrepreneurs’ Relief if you are a trustee, but consult your documents for further information.
Of course we can! For advice and support with the sale of your shares or business and a guide to your tax obligations for any profits, contact our team today!