If you sell or close your business then you may be entitled to claim Entrepreneurs’ Relief which reduces the level of Capital Gains Tax due on qualifying profits to 10%.
There’s no limit to how many times an individual can claim the relief but there is a total lifetime limit of £10 million.
If the qualifying profits relates to shares in a limited company then to qualify you must own at least 5% of the shares in the business for a year and be a director, partner or employee of the business
If the qualifying profits relate to a sole traders or partnership to claim Entrepreneurs’ Relief you must have been trading for at least a year.
You can claim Entrepreneurs’ Relief can be claimed either through your Self Assessment tax return or by filling in Section A of the Entrepreneurs’ Relief factsheet
If you have any questions regarding any accounting or taxation matters then please don’t hesitate to get in touch with us. We are an ACCA registered accountancy practice located in the Northamptonshire village of Lamport. From Michael Paul Accountants Northampton, Kettering, Market Harborough and Corby are all within easy reach.