Flashcards in Capital Gains Tax Deck (3)
Give 4 facts about Entrepreneurs Relief?
1. Available when an individual disposes of all or part of a business and any associated disposals
2. Business and associated assets must have been owed for at least a year prior to disposal
3. Lifetime allowance for ER is £10 million
4. ER is payable at 10% regardless of personal tax rates
What gains do you use the annual exemption against?
The gains with the higher tax rate i.e 20% rather than 10% even if the amount of tax under the lower tax rate is higher