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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have recently moved to the UK after leaving my startup in

Resolved Question:

I have recently moved to the UK after leaving my startup in Germany. When I left I returned most of my shares but retained some 10% of the company. If I would sell these in 2015 would I be eligible for the UKs entrepreneurs special rate of 10% or would I have to pay the normal 28%?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise if you are still an employee of the company ....

You should meet all of the following for Enterpreneurs' Relief:

- you have at least 5% of the shares and voting rights in the company
- you're an employee or director of the company
- the company's main activities are in trading.

for the gain to be taxed at CGT rate of10% other wise your gain will be taxed at 18%, 28% or a combination of both depending on your total income in the year of gain.

More information on this can be found here

https://www.gov.uk/entrepreneurs-relief/eligibility


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

I am not an employee or director after 2014. So next year I would not be - although I have been since founding - I am cofounder.

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

As you won't be an employee for at least one year before the date you sell your shares, you would not meet all the requirements to qualify for Entrepreneurs Relief and take advantage of 10% rate, I'm afraid.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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