Entrepreneur’s relief – associated disposals

For entrepreneur’s relief, provided trading conditions are satisfied, in order for an associated disposal to qualify e.g. trading premises held outside the company, the shareholder must also dispose of at least 5% of the company’s shares.

If there were only 100 shares in issue and he were the only shareholder selling 5% would be fine. But if say he owns 60% and his wife owns 40% he would have to sell 8.3% of his shareholding to qualify.

And be careful of anti-avoidance rules!