Background Note
10.These new provisions are effective in relation to disposals on or after 18 March 2015 in order to prevent the forestalling which would otherwise be likely.
11.This measure removes an unintended facility under the entrepreneurs’ relief rules whereby relief could be claimed by an individual who, whilst holding 5% of a company’s shares, did not have a similar stake in the trade which gave the shares their value. Allowing relief in these circumstances is inconsistent with the relief’s purpose of supporting significant participation by claimants in businesses.
12.This measure ensures that entrepreneurs’ relief is better targeted at people who have a significant investment in a trading business.
