This client came to us from London and needed advice in relation to Entrepreneurs’ Relief on the disposal of his shareholding in a limited company. The technical issue with the case was that on the face of it, Entrepreneurs’ Relief was not applicable as our client had not been an employee or officer of the company during the last twelve months. This would have meant that the client was expecting to pay substantial capital gains tax on disposal of his interest in the company. We discussed in detail the client’s background and his history of involvement in the company and were able to propose a solution in light of several Tax Tribunal cases and applicable legislation which allowed our client to claim Entrepreneur’s Relief on the disposal of his shareholding. This meant that our client would only pay tax at 10% on the disposal and achieved a substantial tax saving.
Our analysis: This was a fairly complex matter and required a considerable amount of technical research including going through detailed judgement commentaries of Tax Tribunal cases. Without the right technical advice, our client would have ended up paying a substantial tax bill. Obtaining the right advice from an experienced tax specialist firm might seem slightly pricey at the outset but can bring substantial tax savings that far outweighs the initial cost.