Entrepreneurs’ relief provides individuals with a reduced capital gains tax when a qualifying business asset has been disposed of. Individuals would pay 10% on qualifying disposals (subject to a lifetime limit of £10 million).
Changes to ER with effect from 18 March 2015
Joint ventures and partnerships:
Disposals will only qualify for ER where at least 5% of the direct shareholding is in a trading company. Any joint venture company or partnership will need to demonstrate their trading status separately to secure ER.
Where a personal asset for example building is used in a company or partnership, which is disposed of, no ER will be available unless there is an associated disposal of at least a 5% shareholding in the company or a 5% share of partnership assets.