Entrepreneur’s Relief
A popular UK tax relief which reduces the standard rate of capital gains tax to 10% on gains made on the disposal of qualifying assets (such as ordinary share capital in a trading company). Certain conditions apply, such as (i) a minimum one year holding period, and (ii) the selling shareholder must be a director or employee of the company concerned and hold a minimum of 5% of ordinary voting shares. Entrepreneur’s Relief can be claimed on the first £10 million of applicable lifetime gains.
