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Gordon Buist considers the definition of a ‘personal company’ for the purposes of entrepreneurs’ relief

Entrepreneurs’ relief (ER) was introduced by former chancellor Alistair Darling in 2008 as the replacement for business asset taper relief. In simple terms, ER now operates by applying an effective 10% rate of capital gains tax on gains arising on a qualifying disposal of business assets, subject to a lifetime limit of £10m. 

The relief: a refresher?

ER is available on disposals of shares in a trading company if the conditions in TCGA 1992 ss169H-169SH are satisfied. In summary, an individual will qualify for ER in relation to shares in a trading company if, throughout the qualifying period of two years ending on the date of disposal: