Entrepreneur's Relief
Entrepreneur's Relief is available for qualifying disposals of shares after 6th April 2008.
The relief reduces the effective rate of CGT from 18% to 10% on chargeable gains, after deducting the annual exemption of £10,100 up to a maximum of £1 million lifetime gains. Once a person has made gains of £1 million no further entrepreneurs relief is available.
To qualify a shareholder must own at least 5% of the company’s ordinary share capital and are able to exercise at least 5% of the votes and be an employee of the company.
The shares must be shares in a trading company and the shareholder must have held the shares for at least 12 months.
