Following the June 2010 Budget, entrepreneurs' relief from capital gains tax is now worth up to £900,000 per person but it can still be complex to obtain and apply in partnership scenarios.

The relief

Entrepreneurs' relief (ER) from capital gains tax (CGT) applies to the disposal by individuals of certain qualifying assets. From 6 April to 22 June 2010, ER was given by reducing the relevant chargeable gains by 4/9ths and applying the 18% rate to the net gain, giving an effective rate of 10%.

From 23 June 2010, the 4/9ths fraction no longer applies - qualifying gains are simply taxed at a rate of 10%.

For further information please contact Matthew Humphrey, 01493 382516 or matthew.humphrey@uk.pkf.com