Entrepreneurs Relief is a tax relief that you can claim if you’re selling or giving your business to someone.
It allows you to pay Capital Gains Tax (CGT) at a reduced rate of 10%. Otherwise you’d pay up to 20%.
You can claim Entrepreneurs’ Relief if:
- you’re either a sole trader, a limited company director, or a shareholder owning at least 5% of the business
- or you have bought the shares through an EMI scheme after 5 April 2013
- and you have owned the business or shares for at least two years before you sell
How you can claim it:
- through your Self Assessment tax return
- or by filling in Section A of the Entrepreneurs’ Relief helpsheet
- you can claim as many times as you want, but up to a total of £1 million over your lifetime (or up to £10 million if you sold before 11 March 2020)
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