The aim of many technology companies is to achieve an early exit. Under Entrepreneur’s Relief you may be able to pay less Capital Gains Tax when you sell (or ‘dispose of’) all or part of your business.
Entrepreneurs’ Relief means you’ll pay tax at 10% on all gains on qualifying assets.
Work out if you qualify
You’ll qualify if you dispose of any of the following:
- all or part of your business as a sole trader or business partner – including the business’s assets after it closed
- shares or securities in a company where you have at least 5% of shares and voting rights (known as a ‘personal company’)
- shares you acquired through an Enterprise Management Incentive (EMI) scheme after 5 April 2013
- assets you lent to your business or personal company