Entrepreneur’s relief changes

6th December 2018 | Posted in: Business Tax, Personal Tax, Planning

The Chancellor has announced two changes to Capital Gains Tax entrepreneurs’ relief:-

  1. The minimum qualifying holding period for entrepreneurs’ relief will be increased from 12 months to 24 months for disposals made on or after 6 April 2019.
  2. The shareholding test is being tightened up on with effect from Budget Day – 29 October 2018.  In addition to the individual being required to hold 5% or more of the ordinary share capital and voting rights, they must now also be entitled to 5% or more of the company’s distributable profits and assets in a winding up, as at present the individual must also be an officer or employee of the company concerned and the company must be a trading company or the holding company of a trading group.
If you feel we could help you and would like to discuss any of the above, please contact Kenny McNeill CTA on 0131 317 7377 or email to kenny.mcneill@jsca.co.uk.
Share this:
What are you waiting for? Get in touch and get professional assistance from Johnston Smillie today. Enquire Now