Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures

 CGT, Corporate Tax  Comments Off on Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures
Jun 032016
 

Last year, the Government made some changes to the rules on entrepreneurs’ relief, aimed at individuals who use a corporate vehicle to conduct their business. Before the changes, it was possible for the individual’s personal company to trade through a joint venture or partnership and apply “look-through” rules to qualify for trading status. This was stopped, but now, following Budget 2016, the position is being restored in cases where the individual holds a 5% interest in the relevant joint venture or partnership.

However, there are quirks in the new rules. As we shall see, the position has not been restored exactly in the way that one might expect. We shall concentrate on the rules for joint ventures, but the rules for partnerships are similar and give rise to the same issues.

(This article can be downloaded in pdf format at Academia.edu)

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Budget 2015 Entrepreneurs’ Relief – New Rules on Joint Ventures and Partnerships

 CGT, Corporate Tax  Comments Off on Budget 2015 Entrepreneurs’ Relief – New Rules on Joint Ventures and Partnerships
Mar 302015
 

This year’s Budget has not been very kind to entrepreneurs’ relief, the 10% tax rate that applies when an individual sells a business. We’ve already seen in last year’s Autumn Statement, the introduction of rules to restrict the relief when a business incorporates. This year’s Budget saw two more measures aimed at people intending to access the relief when they shouldn’t be.

In this article we shall look at the new rule on joint ventures and partnerships. What was the law before the Budget, what is the law now, and why was the law changed? Continue reading »