17 December 2018
Entrepreneurs’ relief (ER) reduces the rate of capital gains tax (CGT) on disposals of certain business assets from 20% to 10%.
The Finance Bill 2018 contained draft legislation outlining the two important changes to ER introduced in the 2018 Budget. The changes affect business owners and their management teams. In practice, the changes will reduce the number of shareholders entitled to claim ER, and create additional complexity in determining whether claims are valid.