David Kilshaw and Vanessa Patterson provide an update on Entrepreneurs’ Relief following the extension of the lifetime limit to £5m
Entrepreneurs’ relief (ER) now has a lifetime limit of £5 million with gains to this taxed at 10%. This represents a huge opportunity for shareholders particularly in private companies. However the complexity of the relief and the narrow conditions which must be met mean that without planning many who expect to qualify will not do so.
Conditions for shareholders
Planning ideas will include involving spouses in the business and having share rights to give greater voting and economic interest. But to undertake such planning it is essential to consider the legislation in detail. This article primarily focuses on relevant considerations for shareholders.
To qualify for ER the disposing shareholder must have been an officer or employee of the company (or of a company in the same group...
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David Kilshaw and Vanessa Patterson provide an update on Entrepreneurs’ Relief following the extension of the lifetime limit to £5m
Entrepreneurs’ relief (ER) now has a lifetime limit of £5 million with gains to this taxed at 10%. This represents a huge opportunity for shareholders particularly in private companies. However the complexity of the relief and the narrow conditions which must be met mean that without planning many who expect to qualify will not do so.
Conditions for shareholders
Planning ideas will include involving spouses in the business and having share rights to give greater voting and economic interest. But to undertake such planning it is essential to consider the legislation in detail. This article primarily focuses on relevant considerations for shareholders.
To qualify for ER the disposing shareholder must have been an officer or employee of the company (or of a company in the same group...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
