In the United Kingdom, entrepreneurs selling their business (technically "qualifying assets") can claim entrepreneurs' relief. This is a lifetime allowance of £10,000,000 of gain that will be taxed at a reduced rate of 10%. To be eligible, a shareholder must have a 5% or more shareholding, and have been involved for a year or more with a company as an employee or director. Capital distributions from a Limited company can occur as a result of a member's voluntary liquidation, and resulting profits are subject to CGT. Return of share capital following a resolution at the AGM is not classed as capital gains.
Entrepreneurs' relief was raised to £2 million in the March 2010 budget. and then to £5 million 3 months later by the new Conservative/Liberal coalition government. In the March 2011 budget it was raised to £10m.
Famous quotes containing the word relief:
“Wild Bill was indulging in his favorite pastime of a friendly game of cards in the old No. 10 saloon. For the second time in his career, he was sitting with his back to an open door. Jack McCall walked in, shot him through the back of the head, and rushed from the place, only to be captured shortly afterward. Wild Bill’s dead hand held aces and eights, and from that time on this has been known in the West as “the dead man’s hand.””
—State of South Dakota, U.S. public relief program (1935-1943)