Hello and welcome to the site. Thank you for your question.
In order to qualify for Entrepreneurs' Relief, following conditions have to met throughout the 12 month period leading up the date of disposal, where the company continues to trade -
- the shares must be held in a trading company or in the holding company of a trading group
- the shareholder must be an officer or employee of the company or a company within the same group
- the shareholder must own at least 5% of the company's ordinary share capital and be able to exercise 5% of the voting rights within the company.
You would certainly qualify for Entrepreneurs' Relief for first dilution provided you meet all of the above conditions... but as far the sale of residual holding is concerned, you will not be entitled to this relief if your holding is below 5% and therefore won't avoid the full CGT rate.
I hope this is helpful and answers your question.
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