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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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UK Capital Gains Tax - Entrepreneurs Relief. A business I started

Resolved Question:

UK Capital Gains Tax - Entrepreneurs Relief. A business I started in 2003 closed down in November 2012. I anticipate selling this business and the land that goes with it by November 2015 ie 3 years later. However I have to make a claim for relief before 31st January 2015. Do I make this claim with estimated proceeds of sale?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

You don't make the claim for entrepreneur's relief for the tax year in which the business ceased unless you sold it during that tax year. The same applies to a business asset you may keep and sell within three years of the cessation of the business. Look under the heading "Claims" on page 1 of HS275 here.

The claim for ER is made for the tax year in which the disposal occurs. So, if you sell your business and the land in, say October 2015 which is within three years of the date of cessation of the business, and you meet all the other qualifying criteria as set out in HS275 here, you make the claim for ER for the 2015/16 tax year.

I hope this helps but let me know if you have any further questions.
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