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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5145
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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, I have sold my company (shares) in 2012, 70000 GBP, after

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Hi, I have sold my company (shares) in 2012, 70000 GBP, after 4 years owning it; is this taxable? considered as capital gain? many thanks, Daniela
Hello and welcome to the site. Thank you for your question.

Please clarify for me
You owned shares in a company and have sold them after holding them for 4 years.
-Did you sell them for £70,000?
-How much profit did you make on this sale?
- What did you pay for these shares?

Gains arising from sale of shares are normally chargeable to capital gains tax.

Many thanks
Customer: replied 3 years ago.



- it was my own company, registered in 2007, 100 % shares owned,

- It was 100 GBP hte initial value

if needed to be taxed where does it need to be included (in which section) in the self assesment tax return?

- the payment was received in 3 installments; if the tax return is done on a cash basis, is it ok to disclose it in 3 years?



Daniele, thank you for your reply and for additional information.

As you sold all shares held in your company, you may be eligible for Entrepreneurs' Relief which means your gain is taxed at 10% instead of 18%, 28% or a combination of both.

There are certain qualifying conditions to claim this relief and they are covered on Page 3 of this helpsheet.

You report the gain in supplementary pages "SA108 - Capital gain summary" of the main tax return - Box 4 of SA108. More information on this can be found here

You would show the whole amount in the tax year the sale took place unless the sale was made in instalments.

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 3 years ago.

Thank you for this.

So, if the contract has been signed on 2nd April 2012, is it too late now, to claim entr. relief? is it anything it can be done now?


Daniela, thank you for your reply.

page 1 refers to claims and time scales.

The sale took place in tax year 2011-12 and a claim should have been made 31 Jan 2014.

I would advise you to write to tax office and notify of your claim by filling in Sc A of the form at the end of helpsheet hs275.

Let's hope it is acceptable.

I hope this is helpful and answers your question.

You may like to read your contract for sale of shares and see if there is anything that suggests conditional/sale in instalments to address the timing of claim issue.

You say the contract was signed on 2 Apr 2012. Was it the completion/handover date


I hope this is helpful.

Customer: replied 3 years ago.

by contract, the payment was scheduled in 3 installments, the last payment was received in April 14.

Daniela, thank you for your reply.

If the contract stipulates the sale is in three instalments then you may be able to get ER for 2 out of those three.

You would be able to amend your tax return for 2103-14 before 31 Jan 2016.
As far as 2012-13 tax return is concerned you could amend it online up to 31 Jan 2015. As you have missed that date, I suggest you write to HMRC and advise them of amended figures for each of the years 2011-12, 2012-13 and 2013-14.

You hope they accept all instalments as qualifying for ER.

Was the first instalment made before 5 Apr 2012?

I hope this is helpful. and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Best wishes.