TAXguide 13/19: Further questions on Finance Act 2019 changes
Following the publication of TAXguide 04/19 ENTREPRENEURS’ RELIEF: Clarification of the new ‘5% proceeds test’ inserted by Finance Act 2019 - questions on scope of the new provisions along with HMRC responses, further questions have arisen on the Finance Act 2019 entrepreneurs’ relief legislation.
A- Condition (i): entitlement to profits and to assets in a winding up
B- Entrepreneurs’ Relief: shares or securities: personal company: dilution election
The Tax Faculty has therefore raised questions with HMRC in order to explore these complexities. HMRC’s replies are set out in full in this TAXguide. These responses are published with the approval of HMRC and with ICAEW’s thanks to HMRC for their engagement.