You may be able to claim Entrepreneurs Relief if you sell or close your business – this means that you only pay 10% Capital Gains Tax on any qualifying profits.
There’s no limit to how many times you can claim Entrepreneurs’ Relief, and you can claim up to £10 million of relief in total during your lifetime.
To claim Entrepreneurs’ Relief you must:
- own at least 5% of the shares in the business for a year
- be a director, partner or employee of the business
To claim Entrepreneurs’ Relief you must have been trading for at least a year.
How to claim
You can claim Entrepreneurs’ Relief either:
- through your Self Assessment tax return
- by filling in Section A of the Entrepreneurs’ Relief factsheet
|Tax year when you sold or closed your business||Deadline to claim Entrepreneurs’ Relief|
|2013 to 2014||31 January 2016|
|2012 to 2013||31 January 2015|
You can’t claim Entrepreneurs Relief if you sold or closed your business before 6 April 2008.
Entrepreneurs’ Relief reduces the amount of Capital Gains Tax you have to pay – eligibility, deadlines, how to claim the relief