Changes will remove what is widely perceived to be an anomaly and disincentive to the raising of outside capital, reports David Whiscombe (BKL).
One provision in the draft Finance Bill that is of specific relevance to SMEs is the legislation (to be introduced as TCGA 1992 Part V Chapter 3A) permitting entrepreneurs’ relief (ER) to be retained following a dilution in the taxpayer’s shareholding below 5% in certain circumstances.
Under current law one of the conditions for ER to be available in respect of a disposal of shares or securities is that the company must be the taxpayer’s ‘personal company’ throughout the one year period ending with the disposal. This requires the holding of at least 5% of the voting rights by virtue of holding at least 5% of the company’s ordinary share capital.
Where dilution occurs on the day of sale and is caused by the exercise of...
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Changes will remove what is widely perceived to be an anomaly and disincentive to the raising of outside capital, reports David Whiscombe (BKL).
One provision in the draft Finance Bill that is of specific relevance to SMEs is the legislation (to be introduced as TCGA 1992 Part V Chapter 3A) permitting entrepreneurs’ relief (ER) to be retained following a dilution in the taxpayer’s shareholding below 5% in certain circumstances.
Under current law one of the conditions for ER to be available in respect of a disposal of shares or securities is that the company must be the taxpayer’s ‘personal company’ throughout the one year period ending with the disposal. This requires the holding of at least 5% of the voting rights by virtue of holding at least 5% of the company’s ordinary share capital.
Where dilution occurs on the day of sale and is caused by the exercise of...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
