EXIT STRATEGY

摘要

Entrepreneurs' relief (ER) is probably the most valuable tax break available to owner managers. It enables them to sell 'their' company at a modest 10% capital gains tax (CGT) rate on gains of up to ￡10m. With a main CGT rate of 28%, this means that ER produces a maximum tax saving of ￡1.8m, ie, ￡10m × 18% (28% less 10%). However, the benefits of ER can be eroded by the lack of diligent planning and failing to recognise the subtleties in the way the rules work in relation to various sale structures. Outlined below are 10 tips to ensure that the savings available under the ER regime are maximised. Unless stated otherwise, all statutory references are to the Taxation of Chargeable Gains Act 1992.