Are you an entrepreneur who doesn’t have much clue on the available entrepreneurs’ relief? If yes, it is important you know about this relief in details.

Entrepreneurs’ relief reduces the amount of the Capital Gains Tax on the disposal or selling of all or some part of the business. This type of relief is available for those individuals and some trustees of settlements. So, whether you are former or a latter, you can claim to HM Revenue & Customs (HMRC) in writing by 31 January following the tax year end in which the qualifying business disposal occurs.

With this relief, you will be able to pay tax at 10% on the qualifying assets. You qualify for this relief under the following conditions:
• When you dispose all or some business assets after it is closed as a sole trader or business partner
• Disposing shares in a company where you have at least 5% of shares and voting rights
• Disposing assets you lent to your business or personal company

Without satisfying these conditions, you won’t be able to claim such relief. If you qualify for this relief, you can work out the gain for all the qualifying assets, add the gains or subtract the loss to get the total taxable gain or loss, and subtract your tax-free allowance. Finally you get a figure where you have to pay 10% on it.

There are two ways through which you can claim this relief. You can either claim it through self-assessment tax return or by filling it Section A of the Entrepreneur’s Relief helpsheet. You can claim up to £10 million of relief during your lifetime.

For more information on this matter, it is best you seek an expert tax adviser.