New Forest Ribbon
New Forest

19/10/2017

Must own 5% of ordinary shares to qualify for CGT entrepreneurs relief

In order for a shareholder to qualify for CGT entrepreneurs relief on the disposal of their shares, they must be an officer or employee of the company (or group) and hold 5% or more of the company’s ordinary share capital and voting rights for 12 months prior to the disposal.

The company must also be a trading company or the holding company of a trading group throughout the same 12 month period.

In a recent tax case, the judge agreed with HMRC that in determining whether or not the shareholders held the required 5% of the ordinary share capital, all of the company’s shares should be considered except those with a fixed rate of dividend (preference shares). A lower court had previously decided that shares with no entitlement to dividends and voting rights could be disregarded.

For further information on CGT entrepreneurs relief, please contact Tracy Jenkins on 023 8046 1202.

Latest Tweets

A great turnout for our seminar with Sue Firth this morning at the Axis Conference Centre with lots of interesting discussions around resilience and stress management.

@suefirthltd

Very inspirational and motivational speech from Baroness Karren Brady at the Hampshire Business Show, which our director Michaela was lucky enough to watch!

#HBS21
@ParisSmithLLP

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.