Selling the LTD and taxes

[Amanensia]

- Income of share sales will be taxed at CGT rate (10%) minus the personal CGT allowance. Where does the ER come into this? I thought it is just on personal level - you have shares, you sell them you pay CGT.

Entrepreneurs Relief reduces the CGT rate payable, provided the conditions are met. The standard CGT rate, after your annual tax-free CGT allowance, is 20% for a higher rate taxpayer. This is reduced to 10% if ER applies.

If you're not a higher rate taxpayer (even after adding the gain from the share sale, less your annual CGT allowance, to your income for the year of sale) then ER isn't relevant as you'll only pay 10% anyway.

[vas]

Entrepreneurs Relief reduces the CGT rate payable, provided the conditions are met. The standard CGT rate, after your annual tax-free CGT allowance, is 20% for a higher rate taxpayer. This is reduced to 10% if ER applies.

If you're not a higher rate taxpayer (even after adding the gain from the share sale, less your annual CGT allowance, to your income for the year of sale) then ER isn't relevant as you'll only pay 10% anyway.

I see. Thanks.