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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6954
Experience:  FCCA FCMA CGMA ACIS
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I want to understand about Entrepreneurial tax. I own 15% of

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I want to understand about Entrepreneurial tax. I own 15% of a small business and want to liqudate some of my shares for my retirement
Assistant: Have you talked to a tax professional about this?
Customer: Not directly I want to get some independent advice
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: I have been offered a lump sum for some of my shares which HMRC has confrmed will be taxed at ER 10%. My concern is that when the business is sold in the future I won't be eligible for the rest
Assistant: When was the property or asset sold?
Customer: No it hasnt been sold yet I have been offered a sum to sell some of my shares to aid my retirement

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

I am a diabetic and have taken my insulin so I must eat. I will be back with you within the hour with a full reply.

Customer: replied 7 months ago.
please can i get a respnse to my question, thanks

I am so sorry for the delay.

You will still be eligible, the relief is available if you sell all or part of your business.

HMRC's advice is misleading. The lump sum is not taxable, only the gain element thereof.

Customer: replied 7 months ago.
Hi there thanks for this can I confirm this by an example, I currently own 15% of a company worth 7 million poundsI can sell 5% of my shares and gain £300k which attracts 10% ER
if in 2/3 years time the company then worth £20 million is sold of which my shares are worth 2 million will this still be elible for ER"

Correct, entrepreneurs' Relief limits CGT to a flat rate of 10% instead of the usual 10% or 20% or a combination of the two rates depending on your income including the gain in the tax years of sale.

bigduckontax and 3 other Tax Specialists are ready to help you
Customer: replied 7 months ago.
Thank you thats very helpful

Delighted to have been of assistance.

Thank you for your excellent support.