CANALITIX ACCOUNTANTS provide advisory and tax planning services in Capital Gains and Inheritance Tax.

Capital Gains Tax (CGT) arises on the sale and disposal of assets, such as property, shares and investments, and other possessions including jewellery, paintings, antiques, precious metals, coins, and stamps.

Entrepreneur’s relief allows entrepreneur to pay 10% CGT on the profits from the sale or disposal of all or part of a business. The relief also applies to individuals who dispose of shares in their personal company and trustees who dispose of business assets.

As of 11 March 2020, the lifetime limit for Entrepreneur’s relief has been reduced from £10 million to £1 million on qualifying disposals.

Therefore, a taxpayer who made capital gains of £10 million on qualifying disposals prior to 11 th March 2020 will be entitled to entrepreneur’s relief of £1 million. However, if the date of the qualify disposal was on or after 11 th March 2020, only £100,000 of entrepreneur’s relief will be available.

These changes were announced by the Chancellor on 11 th March 2020 which made it impossible for entrepreneurs and their advisor to benefit from the old tax regime.