There have been some changes released to entreprenuers releif with the 2018 budget. Here a few of the important points to look out for.
To qualify you must now meet the 5 following conditions, whereas before it was only 3. They must all also be met within a 12-month period ending with the date of disposal, or the date the company ceased trading or ceased being a member of a trading group, where the shares are sold within three years of that cessation. The conditions are:
– Be an employee or officer of the company.
– Hold at least 5% of the “ordinary share capital”.
– Hold at least 5% of the voting rights associated with that ordinary share capital.
– Be entitled to at least 5% of the company’s distributable profits.
– Have a right to at least 5% of the net assets of the company available to equity holders on a winding up.
The two former conditions listed were added to ensure that induviduals who are benefitting from this relief, do in fact have a material stake in the company.
For more information about entrepeneur’s relief follow this link: Entrepreneur’ Relief.