11 Jul 2018
Entrepreneurs' Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where Entrepreneurs' Relief is available CGT of 10% is payable in place of the standard rate. There are a number of qualifying conditions that must be met in order to qualify for the relief. One of these conditions is that an individual’s shareholding must make up at least 5% of the shares.
This means that entitlement to Entrepreneurs' Relief is lost where there is a dilution below the 5% qualifying level as a result of a new share issue. In some cases, this rule can act as a disincentive for entrepreneurs to accept external investment.
The government has therefore decided to make changes to the legislation as part of the Finance Bill 2018-19 to protect entrepreneurs whose shareholding is 'diluted' below the 5% threshold. This measure, which was first announced at Budget 2017 will have effect for shares held at the time of fundraising events to raise additional equity funds which take place on or after 6 April 2019.
There is a lifetime Entrepreneurs' Relief limit of £10 million.
Vada Studios is a very successful music recording facility. The business had outgrown their existing premises, and had a vision to create one of the top residential recording studios in the UK.
A highly successful restaurant, butcher and retail business.
GJA have been the retained accountants for this property investment and development group for over 20 years. Imminently due to dissolve companies.
Proco approached us with an idea of becoming a distributor of a high-end product in the UK, supplying vinyl nationally.
In 2008 Tom Floate left his employer to set up his own business providing website services. Initially forming a partnership with his wife Rachel, they began trading IO Studios from their home office.
Barry the Butcher is a very successful wholesale butchery and retail business.
Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.
Managing Director ACMA
Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.
Operational Director MAAT
David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.
Tax Director ACCA
Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.
Client Manager ACCA
Mr I Cameron
Mr J McCarthy
Regent Square Estates
Andrew Knight. The Howard Arms Ilmington
NPD Design Consultants Ltd
Mckechnies independent tea and coffee bar.
Dean. Wootton IT
Proco Coatings & Laminates
Roy Ferguson. The Perfect Cosmetics Company.
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