Entrepreneurs' Relief and Business Relief explained
13/06/2016 by Sarah Powers
What is Entreprenuer Relief?
You could qualify to pay less Capital Gains Tax when you sell all of part of your business, this is called Entreprenuers' Relief.
The rate is 10%, which is around half of what you'd pay if you don't qualify.
Poole Waterfield can help you to understand whether you will qualifiy, but here are the basic criteria according to Gov.uk:
You’ll qualify if you dispose of any of the following:
- all or part of your business as a sole trader or business partner - including the business’s assets after it closed
- shares or securities in a company where you have at least 5% of shares and voting rights (known as a ‘personal company’)
- shares you got through an Enterprise Management Incentive (EMI) scheme after 5 April 2013
- assets you lent to your business or personal company
You may also qualify if you’re a trustee selling assets held in the trust.
What is Business Relief for Inheritance Tax?
Poole Waterfield can help you to understand whether you will qualifiy, but here are the basic criteria according to Gov.uk:
Business Relief reduces the value of a business or its assets when working out how much Inheritance Tax has to be paid.
Any ownership of a business, or share of a business, is included in the estate for Inheritance Tax purposes.
You can get Business Relief of either 50% or 100% on some of an estate’s business assets, which can be passed on:
- while the owner is still alive
- as part of the will
Call us today on 01384 455505 to discuss whether you qualify.
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Category: Glossary Author: Sarah Powers
