How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Tony (Tax) - I am seriously considering ordinary shares l own

Resolved Question:

Tony (Tax) - I am seriously considering ordinary shares l own in a private closed limited company. The sale price is fixed although l will be paid over a number of years. is there any advice you can give me in order to help mitigate my forth coming Tax bill. Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

If you qualify for entrepreneurs' relief on the share disposal, any CGT liability will be restricted to 10% of the gain and you should be able to pay the tax in instalments. As the rate of CGT on gains not qualifying for ER is charged at 18% or 28% or a combination of the two rates depending on the level of your income, the lower your income is the lower the CGT will be as a consequence. The qualification rules for ER are set out in HS275.

If you reinvested the sale proceeds into a new business asset as described in HS290 you can defer the CGT but you will lose out on entrepreneur's relief on the initial disposal.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions