Following the change to the CGT rate in June 2010, the rules for claiming Entrepreneurs’ Relief (ER) were changed so that relief is now given as a 10% tax rate, rather than the previous subtly different mechanism of reducing the gain but applying the normal rate of CGT.
In certain circumstances it may be possible to achieve an effective tax rate of 5.6% on cashing the loan notes or to receive additional ER where the lifetime limit was previously breached (but there is now some available due to the increase of lifetime gains to £10million).
If you or your clients have QCBs issued between April 2008 and June 2010, please get in contact with Eaves and Co Specialist Tax Advisors, Leeds and Southport to see if we can help.
We have recently been dealing with a project in our Leeds office involving a company restructuring. The client was required to reduce his shareholding in the company as part of the arrangement for a seperate sale of shares in another company.
The situation was complicated by the fact that the company’s other shareholder did not want to obtain outright control of the company.
We proposed a restructuring that would enable the shareholdings to be equalised at 50:50 between the shareholders, thus achieving the desired reduction and commercial objectives. Importantly, we received clearance from HM Revenue & Customs for the proposed transactions and as such they should be achievable at a very low rate of tax with a significant saving over any other options for restructuring.
Eaves and Co Specialist Tax Advisors can help you with advice tailored to your specific needs.
Eaves & Co, Specialist Tax Advisors are excited to have joined the Sharemark Advisers Network.
Sharemark is an alternative trading platform that offers innovative and flexible trading mechanisms to companies, their investors and employees.
Eaves & Co, Specialist Tax Advisors are experienced in providing both tax and share valuation advice to SME’s and their owners. We believe that our tax and share valuation background will allow us to advise both new and existing Sharemark clients on a range of tax matters including; company reorganisations, employee share schemes, management buyouts, entrepreneur’s relief and other taxation aspects of share sales.
For more information on Sharemark, please see their website http://www.sharemark.com/