How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7290
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I want to know about one subject within this field

This answer was rated:

I want to know about one subject within this field "Entrepreneurs' Relief" here is the website (https://www.gov.uk/entrepreneurs-relief) -
you will notice the is this subject "you’ve owned the business for at least 2 years before the date you sell it"I am about to sell my shares as a sole trader
And off paper I have been working on this new business startup for free for almost 3 years now and it's only about to start trading under a limited companyIm I still in title to "Entrepreneurs' Relief"?
JA: Have you talked to a tax professional about this?
Customer: i dont want to talk to a bot!
JA: Anything else you want the Accountant to know before I connect you?
Customer: i want an agent
Customer: replied 1 month ago.
I want to know about one subject within this field "Entrepreneurs' Relief" here is the website (https://www.gov.uk/entrepreneurs-relief) -
regarding this subject "you’ve owned the business for at least 2 years before the date you sell it"

I am about to sell my shares as a sole trader
And off paper I have been working on this new business-startup for free for almost 3 years now and it's only about to start trading under a limited company

Im I still in title to "Entrepreneurs' Relief" when I sell my shares?

Hi, my name is Peter and I am a Chartered Tax Advisor.

 

Regarding the "you’ve owned the business for at least 2 years before the date you sell it" guidance - this just means that you need to have owned the shares for at least 2 years prior to you selling them.

 

Do you have any further queries? I am happy to help.

 

I assume this is a trading company and you are the sole shareholder and selling 100% of the share capital?

 

Kind regards, Peter

Customer: replied 1 month ago.
I know what it means but I dont have any proof as its not a registered business from when I first started. I own 25% of the business
Customer: replied 1 month ago.
the business is not trading yet and its not known with the HMRC
Customer: replied 1 month ago.
to get a real answer i need a HMRC expert, are you a HMRC expert?

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

 

If yoou have owned the shares for over 2 years then Entrepreneurs' Relief (ER) would apply on sale limiting the CGT to a flat rate 10%.

Customer: replied 1 month ago.
Hello, I have been a partner from the start of 2017 but only verbally and not on paper, how does one proof this to HMRC and would I 100% be in title to the Entrepreneur Relief? Please take into account we are just about to start trading and this week we will be a limited company, within the same day we start I am selling my shares. It's for a website, and I hold and own the domain on my own account from the start of 2017

You do not have to under normal circumstances.

Customer: replied 1 month ago.
I am not sure what you mean?

You do not have to prove anything to HMRC, just claim the relief.

Customer: replied 1 month ago.
Okay thanks

Delighted to have been of assistance.

 

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7290
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you

Thank you for your support.