CG63970 - Entrepreneurs’ Relief: claims to relief
TCGA92/S169M
Entrepreneurs’ relief is only due upon a claim being made as follows:
- upon a qualifying business disposal made by an individual
– the claim must be made by that individual
- upon a disposal of trust business assets - it must be made
jointly by the trustees and the qualifying beneficiary concerned.
A claim for relief can only be made if the operation of the
rules for computing relief (found in TCGA92/164N – see
CG64125) results in there being a sum in respect of which relief
can be given – TCGA92/S169M(4). In effect that means that,
after netting off gains and losses, computed in accordance with the
rules of TCGA, on the disposals of assets that together make up the
material disposal of business assets, a net gain arises.
Where a notice to file a return has been issued, then the
claim should be made in the self assessment return of the
individual or of the trustees in the case of a disposal of trust
assets. In other circumstances, the provisions of TMA70/Sch 1A will
apply.
Time Limit
Claims for relief must be made on or before the first
anniversary of the 31 January following the tax year in which the
qualifying business disposal is made TCGA92/S169M (3).
A claim to Entrepreneurs’ Relief is not irrevocable,
it may be amended or revoked within the time limit and the
provision for self assessment and stand alone claims may extend the
time limit for amendment, particularly when an enquiry is
opened.
Husbands and Wives and civil partners
A husband and wife or civil partners are separate individuals and may each make a claim. They are each entitled to Entrepreneurs’ Relief up to the maximum amount available for an individual, provided they each satisfy the relevant conditions for relief.
