Tighter rules on Entrepreneur’s Relief

guildford-entrepreneur-for-accountantsEntrepreneur’s Relief enables qualifying business owners to pay less than 10% tax on the closure or sale of their business, and any related property. However, the Finance Bill 2016 which received Royal Ascent earlier this month, has tightened the rules, such that this is now only available where the business owner is no longer associated with the same type of trade for at least 24 months. This particularly affects property development companies, where each development itself is usually just a single trade in a company all on its own. If you may be affected by the above change in law, and seek an accountant in the Guildford area, we can also provide you with advice on what you may be able to do to mitigate any extra tax payable on effected future disposals.