Entrepreneurs’ Relief

The aim of many technology companies is to achieve an early exit.  Under Entrepreneur’s Relief you may be able to pay less Capital Gains Tax when you sell (or ‘dispose of’) all or part of your business.

Entrepreneurs’ Relief means you’ll pay tax at 10% on all gains on qualifying assets.

Work out if you qualify

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 acquired through an Enterprise Management Incentive (EMI) scheme after 5 April 2013
  • assets you lent to your business or personal company

How we can help

Entrepreneurs’ Relief can give rise to significant savings. Unfortunately the legislation is complex and there are many potential traps for the unwary. Advance planning is essential in view of the various qualifying periods. We have significant experience of helping clients to ensure that they maximise the relief available to them