Company I'm leaving buying my shares, entrepreneur's relief?

[memossy]

Hi there,

I'm leaving a jersey-based, UK-taxed limited company of which I've been a director, employee and 5% (5.01% to be exact) shareholder of for 18 months rather sooner than I expected and they have offered to buy my shares as a good leaver for a nice profit

The company will keep on operating and I will go and do something a bit different on my own, can anyone see any reason the capital gain I make on the shares would not be eligible for entrepreneur's relief?

Would ask my accountant, but don't have one (yet!), will be rectifying that shortly

[Clare@InTouch]

Is it a trading company?

May I ask why Jersey based but UK taxed?

[DirtyDog]

Did you have 5.01% of the voting rights?

[northernladuk]

Are you sure you can even do that?

http://www.hmrc.gov.uk/helpsheets/hs275.pdf
Didn't read it all but certain elements don't seem to fit your situation such as....

Disposal of the whole or part of your business
You must have owned the business directly or it must have been owned
by a partnership in which you were a member. Entrepreneurs’ Relief is not
available on the disposal of assets of a continuing business unless they are
comprised in a disposal of a distinct part of the business.

You know your situation better so see if you fit all the details in that document.

saying that the example would say you can...

You have been a partner with three other persons in a trading business for several years.
Each partner had a 25% interest in the partnership’s assets. On 31 December 2012 you
retire and dispose of your 25% interest in the assets of the business, which continues,
to the other partners. You make gains of £125,000 on the disposals of your 25% share of
the business goodwill and premises. All of your gains will qualify for Entrepreneurs’ Relief
because you have disposed of the whole of your interest in the assets of the partnership.

[memossy]

@Clare@InTouch one of the shareholders wanted it Jersey based as they are an Indian company with a Mauritius subsidiary that owns the shares - believe that particular loop hole disappeared! They paid for the set up so we said sure. It's a financial services company that will continue trading

@DirtyDog I have 8% of the voting rights

@northernladuk thank you kindly, really need to find an accountant!