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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am a partner in a LLP and have been years. I have recently

Customer Question

I am a partner in a LLP and have been for 9 years. I have recently become a non-UK resident and live in Jersey. The partnership is selling its assets for a small sum which will potentially lead to a CGT bill for me. However, as I am no longer UK resident will there be a UK CGT bill at all, and if there is, will I qualify for entrepreneurs relief instead? I have owned more than 5% of the LLP for several years.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question. The news I bring is, I regret, reminiscent of the Curate's Egg.
You would have to have been non resident in the UK for five whole tax years to escape CGT and although Jersey is not part of the UK or even the EU you are still liable.
You would, however, from what you have told me in your question, be entitled to Entrepreneurs' Relief (ER) which would limit your tax to a flat rate 10% on the gain made as opposed to the normal 18% or 28% or a combination of both. There is, however, a caveat, see below.
Here is the Gov UK's guidance on the subject of ER:
'If you’re selling all or part of your business
All the following must apply:
you’re a sole trader or business partner
you’ve owned the business for at least one year before the date you sell or close it
you sell or dispose of your business assets within 3 years after selling or closing the business'
I am so sorry to have to rain a little on your parade.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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