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:
“Nowadays, if New York has a heart, it might be the Garden. Almost everyone goes there, for one purpose or another. There are dog shows, and Sonja Henie and mass meetings.”
—In New York City, U.S. public relief program (1935-1943)