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Reliefs come in various forms. Some defer charges, whilst others reduce the amount of tax before taper relief is applied. Some are allowed automatically, whilst others have to be claimed before the IR will allow them. The more important reliefs as far as business owners are concerned are as follows:

Rollover relief. (also sometimes called holdover relief) Rollover relief allows gains on disposal of business assets (excluding shares) to be deferred if you purchase replacement business assets with the proceeds. ‘Share for share’ exchanges can be eligible for holdover relief, which results in the CGT being deferred until the second parcel of shares is sold.

Retirement relief. This relief was phased out in April 2003.

Special investments. If you dispose of shares in a business in which you were either receiving the Enterprise Investment Scheme income tax relief, or which is a nominated Venture Capital Trust, your gains are exempt if you meet certain qualifying conditions.

Business transfer relief. Where you transfer a business you own to a company you own in exchange for shares, your gains are deferred until you sell the shares.

Gifts hold over relief. This relief allows gains to be deferred when certain assets are given away or sold at less than arm’s length value. An example of this would be a sale to a family member at less than fair market value.