Business Asset Disposal Relief
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In the United Kingdom, entrepreneurs selling their business (technically "qualifying assets") can claim entrepreneurs' relief. This is a lifetime allowance of £10,000,000 of gain that will be taxed at a reduced rate of 10%. To be eligible, a shareholder must have a 5% or more shareholding, and have been involved for a year or more with a company as an employee or director. Capital distributions from a limited company can occur as a result of a member's voluntary liquidation, and resulting profits are subject to CGT. Return of share capital following a resolution at the AGM is not classed as capital gains.[1]
Entrepreneurs' relief was raised to £2 million in the March 2010 budget,[2] and then to £5 million three months later by the new Conservative/Liberal coalition government. In the March 2011 budget it was raised to £10m.[3]
Notes
- ^ http://www.bonavacantia.gov.uk/output/BVC17-Distribution-of-Company-Share-Capital.aspx
- ^ Jordan, Dearbail (24 March 2010). "Budget 2010: a comprehensive at-a-glance guide". The Times. Retrieved 25 August 2011.
- ^ http://www.hmrc.gov.uk/budget2011/tiin6173.pdf
External links
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