Don’t take Entrepreneurs relief for granted!
Attention: Business owners
If you plan to make a profit from the sale of your business, or, close your business and dispose of valuable assets, then you may well expect to be entitled to “Entrepreneurs Relief” and pay capital gains tax at a rate of 10%, rather than the top rate of 28%.
However please do not take this relief for granted and underestimate the conditions that are required to entitle you. You need to look at the structuring of your business now and continually review it right up to the day of the business sale or closure.
If you get it wrong, you may only find out when it is too late, or worst still, when HMRC brings it to your attention.
As a Chartered Tax Adviser I have an in depth knowledge and understanding of the finer details of the legislation.
If you would like to review your entitlement to Entrepreneurs Relief please feel free to contact me at jayne@stratfordtaxstudio.co.uk – I will go through your specific circumstances in depth and provide you with a written report.
Please rest assured that this does not mean that you need to uproot your relationship with your current Accountant as this is a specialist standalone service.
Attention: Accountants
As busy people you often focus your energies on ensuring that your clients meet their many compliance requirements and feel that its job done when everything is submitted on time. At the end of the day this might be all the client is paying for!
However the recent negligence case of Mehjoo v Harben Barker serves to highlight the importance of understanding what your client believes you are offering by way of services and of the need to seek specialist tax input when you do not have the necessary knowledge or expertise.
The costs of getting it wrong cannot be underestimated. As a minimum you should review your ER risk management strategy. If you would like help with this I would be pleased to provide my services on a consultancy basis.
Further details: Chartered Institute of Taxation Professional standards commentary August 2013 – http://www.tax.org.uk/tax-policy/newsdesk/2013/Mehjoo