What is the Entrepreneurs’ Relief?

If your business was not successful and you decided to move on, the good news is that you may use Entrepreneurs’ Relief.

It’s one of the most attractive tax reliefs in UK:

10% CGT on qualifying assets
£10,000,000 lifetime gains.

How do I calculate Entrepreneurs’ Relief?

Add together the capital gains, deduct losses, and work out the total taxable gain eligible
Next deduct your tax-free allowance
You pay 10% tax on what’s left.

What kind of businesses are eligible?

Sole trader businesses
Partnerships
Limited companies.

Also, the company’s main activities must be in trading (as opposed to things like financial investment).

What is the One Year rule?

you’ve owned the business for at least one year before the date you sell it, or
you’ve been with the company for at least a year if you’re selling shares, or
if your shares are not EMI shares, you were given the option to buy them at least one year before you’re selling them.

Is Entrepreneurs’ Relief available for EMI shares?

If you got your shares through the Enterprise Management Incentive Scheme, you must have at least 5% of shares and voting rights in the company to qualify.

What if I’m selling assets that I loaned to my company?

Then both the below criteria must apply:

you sold at least 5% of your shares in a company (or part of partnership)
you owned the assets but let your business partnership or company use them for at least one year up to the date you sold (or closed) the business or sold the shares.

How do I claim it?

Either:

by filling in Section A of the HS275 form
through your self assessment tax return (easiest).

You have two years from the sale until you can claim.

How TaxScouts works

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.