16 February 2021

Capital Gains Tax (CGT) Revised Entrepreneur Relief

Tax and Duty Manual Part 19-06-02b has been updated to reflect an amendment made to entrepreneur relief by section 24 of the Finance Act 2020. The requirement for an individual to have owned a holding of at least 5% of the ordinary share capital is amended so that the shares can qualify for relief if they were held for a continuous period of 3 years at any time prior to the disposal of those shares. The amendment applies to disposals of chargeable business assets made on or after 1 January 2021.