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Entrepreneurs' Relief
Entrepreneurs’ relief has the effect of diminishing the amount recorded as the chargeable gain on qualifying assets by 4/9. The actual rate of tax payable on this gain is therefore reduced to 10%.
Where a disposal is made on or after 6th April 2008, a person can initiate a claim for this, provided the total of claims made in all years does not exceed chargeable gains of £1,000,000 or more.
Points to Note
Where capital assets are transferred between spouses and common law partners, in most circumstances, they will not fall within the scope of being chargeable.
The common tax rates relating to chargeable gains within trusts is 18% for the tax year 2008/09 (40% in the tax year 2007/08).
In situations where a single person or group create more than one trust, the current allowance will be split on an equal basis between each of them, subject to a minimum allocation to each of £960. For the 2007/08 tax year, the minimum allotment to each trust was £920.
