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Budget 2018: Entrepreneurs’ Relief

  • In the October 2018 Budget the Chancellor announced two new changes to the definition of a personal company for Entrepreneurs’ Relief (ER).
  • For disposals on or after 29 October 2018, two new tests should be met when claiming ER on the disposal of shares.
  • This includes: a 5% interest in the distributable profits of the company and a 5% interest in the assets available for distribution to equity holders in a winding up
  • For disposals on or after 6 April 2019, individuals should meet the qualifying conditions for a minimum of two years, up from 12 months. This therefore supports longer-term investment.
  • Due to this, entrepreneurs may consider selling earlier in order to qualify before the new rules take effect on 6 April 2019

Georgina is a solicitor with nearly 30 years of experience in advising substantial businesses on complex legal issues and providing strategic and commercial solutions.