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:
“Stupid word, that. Period. In America it means “full stop” like in punctuation. That’s stupid as well. A period isn’t a full stop. It’s a new beginning. I don’t mean all that creativity, life-giving force, earth-mother stuff, I mean it’s a new beginning to the month, relief that you’re not pregnant, when you don’t have to have a child.”
—Michelene Wandor (b. 1940)