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Entrepreneurs Relief

What is ‘Ordinary Share Capital’? Types, Facts, Advantages & Disadvantages

What is ‘Ordinary Share Capital’? – Types of Ordinary Shares vs. Preference Shares, Premiums & Characteristics. As the poet, William Blake, once said, “hindsight is a wonderful thing, but foresight is better”. This particularly rings true when devising a corporate exit strategy and ensuring the applicability of Entrepreneurs’ Relief (ER) 

Badges of trade: is there a trading activity?

Badges of trade: is there are trading activity? Introduction – badges of trade Do not confuse the ‘badges of trade’ with the ‘badgers of trade’. Whilst the latter is an organisation of mercantile woodland creatures, the former is a set of key indicators that are used to determine whether a 

Entrepreneurs’ Relief – Lessons Learned The Hard Way

Entrepreneurs’ Relief has now been around for 10 years and it is easy to assume that there is nothing left to learn. In this article we consider a couple of recent cases which demonstrates that there are still lessons to be learned, or at least “bear traps” to avoid, and 

Catch 22: Company Purchase of Own Shares – Multiple Buy-backs and Entrepreneurs’ Relief

Catch 22: Company purchase of own shares – Multiple buy-backs and Entrepreneurs’ Relief Company purchase of own shares – introduction In this article we look at a potential issue – the availability of entrepreneurs’ relief (ER) where there is a multiple completion company purchase (buy back) of own shares. Before 

Phoenix cardinal? HMRC attack tax motivated liquidations with Targeted Anti-Avoidance rule.

Introduction Apologies for the dreadful pun. Not only dreadful but dated. I am informed that the St Louis Cardinals have not been the Phoenix Cardinals since 1994. Unfortunately, things get no better from this point forward as this is largely an update on one of our earlier articles. The Finance Bill 

Budget 2016: Equitable changes for the private equity industry and carried interest holders?

Prior to the Budget, draft legislation had been published which would tax carried interest (and other performance incentives of asset managers ) as trading income. This is unless the average holding period of the fund’s assets was at least four years. HMRC, British Venture Capital Association (BVCA) and other interested parties have been 

Close Company Liquidations: The Changes

Close company liquidations Changes are afoot that will see amendments to the Transactions in Securities (TIS) provisions and will take effect from 6 April this year. The changes are designed to impact distributions made in a winding up.  What are the impact of the changes?  Broadly speaking, at present, where 

Budget 2015: Tweaks for Entrepreneurs Relief

Entrepreneurs’ relief, joint ventures and partnerships Last week’s Budget announced that the availability of Entrepreneurs’ Relief (ER) has now been restricted. With immediate effect, new measures will deny relief on a disposal of shares in a company that is not trading in its own right. ER provides for a 10% 

The end of goodwill to all men?

Every once in a while a Budget or Autumn Statement throws something out of leftfield. Some thing unexpected. Something which seems a little hard to fathom. It is probably fair to say that the removal of entrepreneurs’ relief (ER) on business incorporations came certainly as one of these events. The 

Entrepreneurs’ Relief & Deferred Gains: Autumn Statement 2014

Previously, gains that qualified for CGT entrepreneurs’ relief (ER) but were deferred into an Enterprise Investment Scheme (EIS) or Social Investment Tax Relief (SITR) investment essentially lost the benefit of ER on subsequent sale. However, the Autumn Statement has revised this position such that, if the original disposal qualified for