Capital gains tax explained Capital gains tax if you own a business

Green Grocer

You might qualify for the entrepreneurs’ allowance

If you are selling a business, you may qualify for entrepreneurs’ allowance. You can claim if:

  • you are a sole trader or partner selling part or all of your business or its assets, or
  • you control at least 5% of a company whose shares or assets you are selling
  • you sell assets from the above businesses within three years of closing down.

The relief effectively reduces the CGT rate to 10% on the first £10m of gains you make over your lifetime from selling such assets. Any gains above this are taxed at 20%. The relief applies if you run a trading business or furnished holiday letting, but not any other property letting business.

More on this...

Last updated:

April 2016

Updated by:

Ian Robinson

 

Which? Limited (registered in England and Wales number 00677665) is an Introducer Appointed Representative of Which? Financial Services Limited (registered in England and Wales number 07239342). Which? Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Registered office: 2 Marylebone Road, London NW1 4DF.