CG64005 - Entrepreneurs’ Relief: relevant business assets

TCGA92/S169L

In certain circumstances not all the disposals of assets that comprise the qualifying business disposal are eligible for Entrepreneurs’ Relief.

Where a qualifying disposal is not of shares in or securities of a company (or of interests in such shares and securities) Entrepreneurs’ Relief is to be given only in respect of the disposal of “relevant business assets” - TCGA92/S169L (1).

“Relevant business assets” are assets (including goodwill) which are used for the purposes of the business by reference to which Entrepreneurs’ Relief is due (or interests in such assets) and disposals of which are:

• a material disposal of business assets, or
• a disposal of trust business assets, or
• a disposal associated with a relevant material disposal.

But certain assets are “excluded assets” – TCGA92/S169L(4). These are not “relevant business assets”. They are any shares and securities, and any assets, other than shares and securities, held as investments.