Policy paper

Capital Gains Tax: allowing Entrepreneurs' Relief on deferred gains

This Tax Information and Impact Note is about allowing Entrepreneurs' Relief on deferred gains.

Documents

Capital Gains Tax: allowing Entrepreneurs' Relief on deferred gains

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Details

Enterpreneurs’ Relief provides for a lower rate of Capital Gains Tax (10%) to be paid when disposing of all or part of a business where certain criteria are met. The measure will allow gains which are eligible for Enterpreneurs’ Relief, but which are instead deferred into investments which qualify for Enterprise Investment Scheme (EIS) or Social Investment Tax Relief (SITR), to benefit from Enterpreneurs’ Relief when the gain is realised (for instance on the disposal of the EIS shares or the SITR investment), subject to the normal conditions for Enterpreneurs’ Relief applicable at the time of the original disposal.

Published 10 December 2014