Mark McLaughlin looks at the announced changes to the definition of personal company for capital gains tax entrepreneurs’ relief purposes and the potential implications for shareholders.
Tax is certainly a fast-moving and unpredictable world. The February 2019 edition of Tax Insider Professional featured an article on various changes to the capital gains tax entrepreneurs’ relief (ER) regime, as originally announced in Budget 2018.
Minor ripples
One of those measures was a proposed tightening of the definition of an individual’s ‘personal company’ for ER purposes (in TCGA 1992, s 169S) by the addition of two further tests to that definition, with effect for disposals on or after 29 October 2018. This would require the individual to have a 5% interest in both the distributable profits and
