Entrepreneures’ relief amended to allow increased relief in joint ventures and partnerships.

This will apply to disposals on or after 3 December 2014 and will be introduced in the Finance Bill 2016. Entrepreneurs’ Relief (ER) can be claimed in respect of gains on goodwill where the claimant holds less than 5% of the shares, and less than 5% of the voting power in the acquiring company.

This ‘holding condition’ will replace the requirement in section 169LA of the Taxation of Chargeable Gains Act 1992 that the claimant must not be a ‘related party’ in relation to the company.

Relief will also be due where the claimant holds 5% or more of the shares or voting power if the transfer of the business to the company is part of arrangements for the company to be sold to a new, independent owner.

Article from ACCA In Practice