MINIMUM REQUIREMENT FOR ENTREPRENEUR’S RELIEF
There has been an interesting case, Alan Castledine the Commissioners for HMRC, concerning the minimum requirement for entrepreneurs relief. It acts as a timely reminder as to the qualification for entrepreneurial relief.
This is that in order to qualify for such relief from Capital Gains Tax in respect of shares or securities of a company the person seeking the relief, the tax payer, must hold at least 5% of the ordinary shares of the company. At least 5% of the voting rights in the company must be exercisable by that person, there are other conditions for relief to be made available which include the fact that the shares must be held for a minimum of 12 months and where the relief applies the tax payer will qualify for a reduced rate of Capital Gains Tax of 10% on up to £10,000,000 of the lifetime gain.