Entrepreneurs’ Relief

Business: Selling Closing

    You may be able to claim Entrepreneurs’ Relief if you sell or close your business – this means that you only pay 10% Capital Gains Tax on any qualifying profits.

    Eligibility

    There’’s no limit to how many times you can claim Entrepreneurs’ Relief, and you can claim up to £10 million of relief in total during your lifetime.

    Companies

    To claim Entrepreneurs’ Relief you must:

    • own at least 5% of the shares in the business for a year
    • be a director, partner or employee of the business

    Sole traders

    To claim Entrepreneurs’ Relief you must have been trading for at least a year.

    How to claim

    You can claim Entrepreneurs’ Relief either:

    • through your Self Assessment tax return
    • by filling in Section A of the Entrepreneurs’ Relief factsheet

    Download ‘Entrepreneurs Relief factsheet’ (PDF, 136KB)

    Deadline

    Tax year when you sold or closed your businessDeadline to claim Entrepreneurs’ Relief
    2013 to 201431 January 2016
    2012 to 201331 January 2015

    You can’’t claim Entrepreneurs’ Relief if you sold or closed your business before 6 April 2008.

    Entrepreneurs’ Relief reduces the amount of Capital Gains Tax you have to pay – eligibility, deadlines, how to claim the relief