15 Nov

Extension of eligibility period for 10% CGT tax rate for EMI

The Chancellor increased the qualifying time period for entrepreneur's relief in the last budget. This relief reduces the capital gains tax charge on the profit made on the sale of eligible shares from 20% to 10%. EMI option holders can also benefit from the 10% entrepreneur's relief rate when they sell their option shares, but after 5 April 2019 they will qualify only if the period from the date that the options were granted up to the date of sale of their shares is 24 months or longer. Until 5 April 2019 the qualifying period is 12 months.