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bigduckontax
bigduckontax, Accountant
Category: Tax
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I had 4% shares in the company I worked for and I add shares

Customer Question

I had 4% shares in the company I worked for and I add shares through management incentive scheme.

The sold part of the business and then liquidated the remaining assets and closed the holding company as a result my part of investment including the management incentive resulted in 6.75% shares holding and I received the funds on that bases.

I had purchased the original shares.

Q

Can I claim EP relief

I have also invested share in a new company I work for, can I claim relief on that investment
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Entrepreneur's Relief is only available if you were investing at the start of the company's operations ie if you were an initial investor. Furthermore, you must own at least 5% of the ordinary shares in the company which give you at least 5% of the voting rights.

There is no relief on investing in shares in the company which employs you. There may ultimately be relief from Capital Gains Tax (CGT) in the event of disposal depending upon which investment scheme is used to acquire the shares.


Customer: replied 3 years ago.
The companies assets have been disposed. The company no longer exists or trades. Can I get relief on gains from the disposal
Expert:  bigduckontax replied 3 years ago.
Depending upon the scheme under which your shares were issued will determine your liability to CGT. In any event, if you are liable for CGT, there is an Annual Exemption Allowance of 11K which could well reduce your liability significantly, maybe even to zero..
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.

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