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