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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4346
Experience:  FCCA FCMA CGMA ACIS
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Hi, if I sell my shares in mu business, do I have to have owned

Customer Question

Hi, if I sell my shares in mu business, do I have to have owned my shares for five years in order for them to qualify for capital gains tax? Or will they fall into income tax?
Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
No, sales of shares of this type would be the subject of Capital Gains Tax (CGT) on the gain realised assuming the sale were made at market value. You have an Annual Exempt Allowance of 11K to deduct from the gain and the balance is taxed at 18% or 28% or a combination of the two rates depending upon your income including the gain in the year of sale. However, if you were in at the ground floor, so to speak, in other words at the start of the business you may be entitled to Entrepreneurs' Relief which reduces the tax rate to 10%.
I do hope I have helped you with your question.
Customer: replied 3 years ago.

Many thanks!

Expert:  bigduckontax replied 3 years ago.
Pleased to be of assistance. Please be so kind as to rate me before you leave the Just Answer site.