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Capital Gains Tax Reliefs for SMEs and Entrepreneurs 2022/23

Authors: Satwaki Chanda and Sam Hart

Publication Date: December 2022

Publisher: Bloomsbury Professional

Law As Stated At: 31 October 2022

Capital Gains Tax Reliefs for SMEs and Entrepreneurs 2022/23

Capital Gains Tax Reliefs for SMEs and Entrepreneurs 2022/23

This specialist technical information guides you through the reliefs available for your clients' capital transactions, compares and contrasts how different types of businesses can benefit and gives guidance on how to avoid the pitfalls put in place to prevent the abuse of those reliefs. It outlines the calculation, process and application of the key tools that allow gains to be deferred, held-over or extinguished, as well as addressing the use of capital losses which may arise. The emphasis is on business asset disposal relief (formerly entrepreneurs' relief), EIS, SEIS and social investment relief.

It is structured to reflect the changing needs of a business and its owners throughout the business lifecycle; from sole-trader to incorporation, expansion to a group, withdrawal of the founders, passing-on the business and disincorporation.

Brought fully up to date for 2022, this update includes the following:

  • New chapter on Venture Capital Trusts and how they can be used to raise funds for entrepreneurs (Chapter 11)
  • New chapter on Enterprise Management Incentives - share options to incentivise employees (Chapter 25)
  • Business asset disposal relief - various cases on the meaning of ordinary share capital (5.43)
  • A review of some other recent cases on BADR and whether the relevant conditions have been met, including the Allam (5.47), Kavanagh (5.36) and Potter (5.47) cases
  • Reporting of the 2022 Court of Appeal decision in Skinner which has important implications from trustees claiming BADR (5.74)
  • EIS and other risk capital schemes - cases on the new risk to capital condition, primarily concerning the film industry (7.15A, 8.14A)