Policy paper

Entrepreneurs’ Relief where shareholding ‘diluted’ below the 5% threshold

This measure allows individuals whose shareholding is ‘diluted’ below the 5% threshold as a result of a new share issue to obtain relief for gains up to that time.

Documents

Draft legislation

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory note

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

The measure ensures that entrepreneurs are not discouraged from seeking external investment to finance business growth in circumstances where their own shareholding becomes diluted.

This is part of the government’s response to the patient capital review, and is in line with the government’s policy of supporting enterprise and entrepreneurship.

A consultation with a summary of responses about allowing Entrepreneurs’ Relief on gains made before dilution is also available.

Updates to this page

Published 6 July 2018

Sign up for emails or print this page