Founders’ Relief, What is it and do you qualify?
A new 10% Capital Gains Tax rate could make a significant difference when you sell your business. Discover whether you may qualify, explore the criteria below.
10%
£10m
2027
Do you meet the proposed HMRC criteria?
Founder Eligibility
25% shares
You must have held at least 25% of the ordinary share capital when the business began trading or was preparing to trade.
5 years
You must have held the shares for at least 5 tax years.
UK resident
You must have been a UK resident for at least 5 tax years.
Company Eligibility
£10m turnover
Your company must have generated at least £10m of turnover.
15 employees
Your company must have at least 15 full-time equivalent employees.
UK-based
Your company must have a UK presence.
Trading
Your company must be a trading company (some exclusions will apply).
Growth & Innovation
Your company must meet 2 of 3 tests.
25% turnover growth
25% annualised turnover growth over a specified period.
25% employee growth
25% annualised employee growth over a specified period.
£1.5m R&D
At least £1.5m of qualifying R&D expenditure and have claimed R&D tax relief.
Do you meet the Criteria?
Get in touch to book a confidential conversation with one of our directors to understand the latest rules, explore the qualifying criteria and discover what they could mean for your business exit.
Next Steps
Do you want to find out more? Read our article by clicking the link below.
Alternatively, scroll down to contact us and arrange for a free, no obligation consultation where we can explore how your business aligns with the criteria and help you assess your options. Whether you qualify for it already, or you want help building towards qualifying for it.
Book a Founders’ Relief Discussion
If want to explore whether you qualify for Founders’ Relief or how you can position your business to take advantage of it, request a no-obligation exploratory consultation with one of our directors: