Process for Claiming Entrepneurs Relief

Ginger_Winner

I'm closing down my business having recently started a full time job.

My business account will have a positive balance of around £25k after the final accounts and corporation tax has been paid. I plan to take this cash as a capital gain up to the threshold and claim entrepneurs relief on the remainder.

I usually complete my own personal tax returns, but use an accountant for submitting my final accounts and calculating my corporation tax liability.

I'm unclear of the exact process I need to follow with regards to claiming Entrepneurs relief. Do I need to use my accountant to administer this via my business or is it a relatively straight forward matter for me to administer via my personal return.

If someone could help me to understand the process I need to follow, I would be very grateful...

pjclar02

Hello there

The claim is made through your self-assessment return. It is relatively straightforward - although I don't use the HMRC online filing software (I presume that is what you use) so I'm not sure how easy the claim is to find using it!

CTA_2

Ginger_Winner wrote: »

I'm closing down my business having recently started a full time job.

My business account will have a positive balance of around £25k after the final accounts and corporation tax has been paid. I plan to take this cash as a capital gain up to the threshold and claim entrepneurs relief on the remainder.

I usually complete my own personal tax returns, but use an accountant for submitting my final accounts and calculating my corporation tax liability.

I'm unclear of the exact process I need to follow with regards to claiming Entrepneurs relief. Do I need to use my accountant to administer this via my business or is it a relatively straight forward matter for me to administer via my personal return.

If someone could help me to understand the process I need to follow, I would be very grateful...

Whilst the process for claiming the relief is straightforward (via the tax return/CGT computation) the calculation of the relief isn't always straightforward.

You need to file a tax return with the CGT supplementary pages showing a computation for the CGT due and within that computation a single line showing your ER calculation will be sufficient to claim.

You have approx 2 years to make the claim.