Entrepreneurs relief changes Entrepreneurs relief changes
Posts 1 to 2 of 2
  1. #1

    Still gathering requirements...


    Join Date
    Feb 2015
    Posts
    21

    Question Entrepreneurs relief changes

    Hi all, apologies if this question is confusing, I am a bit confused myself.

    I realise that it's still all speculations with regards to ER changes in the coming budget. But I wondered if anyone can shed some light.

    With regards to TAAR, my understanding is that if the rules do apply to someone then they would be subject to income tax on the distributions, so it's not just the 10% ER that they would lose but also they wouldn't be able to use CGT of 20%.

    Would it be more likely then that if the government does remove ER, CGT at 20% cannot be used and it would be income tax instead? Or would that depend on how the rules get amended ?

    Not sure if that makes sense, but I guess what I mean is, if ER does get removed, would we be looking then at CGT, or income-tax on distributions?

    Thank you.

  2. #2

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,632

    Default

    Quote Originally Posted by amrhady View Post
    Hi all, apologies if this question is confusing, I am a bit confused myself.

    I realise that it's still all speculations with regards to ER changes in the coming budget. But I wondered if anyone can shed some light.

    With regards to TAAR, my understanding is that if the rules do apply to someone then they would be subject to income tax on the distributions, so it's not just the 10% ER that they would lose but also they wouldn't be able to use CGT of 20%.

    Would it be more likely then that if the government does remove ER, CGT at 20% cannot be used and it would be income tax instead? Or would that depend on how the rules get amended ?

    Not sure if that makes sense, but I guess what I mean is, if ER does get removed, would we be looking then at CGT, or income-tax on distributions?

    Thank you.
    I don't think there's any chance of CGT disappearing.
    So whether you pay income tax, dividend tax or CGT is down to the sums involved and your personal circumstance.
    See You Next Tuesday

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •