Entrepreneurs’ relief (‘ER’) is available to business owners on the sale of their businesses. It reduces the tax rate on a sale from 20% to 10%. If advisers get it wrong then the increase in tax is 100%!
While most advisers are aware that it can apply to shares in trading companies – the rules are not straight forward. There have been several changes over the last few years and the 2018 budget made further changes to the qualifying period and personal company definitions which could impact on some shareholders eligibility for relief. If shares do not qualify for ER and this is discovered shortly before a sale it is too late to rectify.
For the next two months the Gabelle OMB team will be offering a review of shares in companies to confirm the ER position. This review will be carried out at a heavily discounted rate – a fixed fee of £950 plus VAT. The client will receive a comprehensive report of the ER position. Where ER is not available advice will be given on what steps should be considered to improve the position.
To carry out the review the team will need the most recent statutory accounts (full set) and a list of the shareholders and their shareholdings.
For more information, please contact Martin Mann on 0845 4900 509 or email at email@example.com.