Entrepreneurs' relief

A relief from capital gains tax (www.practicallaw.com/8-107-5849) (CGT) that is available to individuals and trustees (www.practicallaw.com/8-107-7419). It can be claimed in respect of gains arising on disposals of businesses, shares in personal companies and associated business assets with effect from 6 April 2008 (section 169H-169S,Taxation of Chargeable Gains Act 1992). The effect of the relief is to apply an effective rate of CGT of 10% to qualifying gains falling within the cumulative lifetime limit, as follows:

  • £1 million for gains realised between 6 April 2008 and 5 April 2010

  • £2 million for gains realised between 6 April 2010 and 22 June 2010;

  • £5 million for gains realised between 23 June 2010 and 5 April 2011; and

  • £10 million for gains realised on or after 6 April 2011.

For an overview, see Practice note, Entrepreneurs' relief: overview (www.practicallaw.com/2-382-4258). For a more detailed analysis, see Practice note: Entrepreneurs' relief (www.practicallaw.com/4-381-1491)

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