ICAEW.com works better with JavaScript enabled.

This is exclusive content

Entrepreneurs’ relief: two practical points

Lynnette Bober and Andrew Cockman detail two practical points on entrepreneurs’ relief that have been discussed with HMRC. ICAEW has been given permission to make HMRC’s position public.

Provided the qualifying conditions are met, the disposal of shares in a trading company or a holding company of a trading group qualify for ER. This is covered in the legislation at s169I(2)(c) and s169I(5)–(7R), Taxation of Chargeable Gains Act 1992 (TCGA 1992)

The issue discussed with HMRC relates to s169I(6), TCGA 1992, specifically to condition A, which is that throughout the period of one year ending with the date of disposal: