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Entrepreneurs relief – An officer or an employee

Entrepreneurs relief – An officer or an employee

We understand that one of the first areas HMRC check when deciding whether to enquire into a claim for entrepreneurs relief on the sale of shares is whether the claimant was an officer or employee throughout the twelve months prior to the sale.

HMRC will look at the company PAYE records for employees and at Companies House records for those who were officers rather than employees.

One problematic area can arise with the role of company secretary.  Companies are no longer required to have the formal office of company secretary.

If this is the case, and Companies House records do not show any formal appointment, it may be advisable to ensure that the individual is paid for their role.

It is also vital to ensure that the employment is not terminated, or the office resigned before the shares are actually sold.  If it is then entrepreneurs relief will not be available.

For more information, please contact Lesley Sutton on 01484 550037 or email lesley.sutton@revellward.co.uk.

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