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HMRC internal manual

Capital Gains Manual

Entrepreneurs’ Relief: claims to relief

TCGA92/S169M

Entrepreneurs’ relief is only due upon a claim being made as follows:

  1. upon a qualifying business disposal made by an individual - the claim must be made by that individual
  2. upon a disposal of trust business assets - it must be made jointly by the trustees and the qualifying beneficiary concerned.

A claim for relief can only be made if the operation of the rules for computing relief (found in TCGA92/164N - see CG64125) results in there being a sum in respect of which relief can be given - TCGA92/S169M(4). In effect that means that, after netting off gains and losses, computed in accordance with the rules of TCGA, on the disposals of assets that together make up the material disposal of business assets, a net gain arises.

Where a notice to file a return has been issued, then the claim should be made in the self assessment return of the individual or of the trustees in the case of a disposal of trust assets. In other circumstances, the provisions of TMA70/Sch 1A will apply.

Time Limit

Claims for relief must be made on or before the first anniversary of the 31 January following the tax year in which the qualifying business disposal is made TCGA92/S169M (3).

A claim to Entrepreneurs’ Relief is not irrevocable, it may be amended or revoked within the time limit and the provision for self assessment and stand alone claims may extend the time limit for amendment, particularly when an enquiry is opened.

Husbands and Wives and civil partners

A husband and wife or civil partners are separate individuals and may each make a claim. They are each entitled to Entrepreneurs’ Relief up to the maximum amount available for an individual, provided they each satisfy the relevant conditions for relief.