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HMRC internal manual

Capital Gains Manual

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.

CG63955 Introduction TCGA92/S169H
CG63970 Claims TCGA92/S169M
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
CG64135 Deferred gains TCGA92/S169T-V
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
CG64160 Reorganisations: QCB’s TCGA92/S169R
  Interpretation TCGA92/S169S
CG64165 Transitional provisions - Reorganisations: QCB’s FA08/SCH3/PARA7
CG64170 Transitional provisions - Enterprise Investment Schemes FA08/SCH3/PARA8
  and Venture Capital Trusts