Entrepreneurs’ Relief: scope and layout of guidance
Finance Act 2008 introduced Entrepreneurs’ Relief for gains arising from a material disposal of business assets by individuals and the trustees of certain settlements and disposals of other business assets associated with a material disposal of business assets where certain conditions are met.
Entrepreneurs’ Relief was first announced in January 2008 with draft legislation being published shortly after.
Entrepreneurs’ Relief was introduced by FA2008/S7 and Sch3 which inserted the provisions into TCGA 1992 from S169H to S169S. FA2008/Sch3/paragraph5 contains the commencement provisions for Entrepreneurs’ Relief. It applies to disposals made on or after 6 April 2008.
Subsequent amendments have been made by FA2010/S4, F(No.2)A2010/Sch1/Paras 4 to 9 and FA2013/S64 and Sch24.
The guidance is organised so that for each aspect there is an introductory paragraph giving a general overview of the topic followed by more detailed information. The introductory paragraphs are shown in the table below.
Layout of guidance
For convenience the statutory references in TCGA92 are used throughout this guidance. They cover the following areas.
|CG63975||Material Disposal of Business Assets by Individual||TCGA92/S169I|
|CG63985||Disposal of Trust Assets||TCGA92/S169J|
|CG63995||Disposal associated with relevant material disposal||TCGA92/S169K|
|CG64005||Relevant Business Assets||TCGA92/S169L|
|CG64006||Exclusion of Goodwill||TCGA92/S169LA|
|CG64010||Disposal of whole or part of business: conditions and disposal of assets after cessation of a business|
|CG64052||Enterprise Management Investment Scheme shares|
|CG64055||Meaning of trading company and holding company of a trading group||TCGA92/S169SA|
|CG64125||Amount of Relief - general||TCGA92/S169N|
|CG64140||Amount of Relief - Trust provisions||TCGA92/S169O|
|CG64145||Amount of Relief - Special provisions for certain associated disposals||TCGA92/S169P|
|CG64155||Reorganisations: disapplication of section 127||TCGA92/S169Q|
|CG64165||Transitional provisions - Reorganisations: QCB’s||FA08/SCH3/PARA7|
|CG64170||Transitional provisions - Enterprise Investment Schemes||FA08/SCH3/PARA8|
|and Venture Capital Trusts|