chapter 14 example 8

Dear Tutor,

Example 8: Richard acquired a 25% holding in an unquoted trading company in March 1991 for £60,000. He immediately became an employee of
the company.
In March 2017 he sold the shares to his son for £85,000 when their value was £200,000. Richard and his son claimed relief for a gift of a
business asset.

My Question:
As per lec note, “(a) When a claim for gift relief is made, the donor may lose entitlement to entrepreneurs’ relief”,
then in Example 8 when Richard claimed for gift relief why did we grant him entrepreneur’s relief by charging CGT rate of 10%, shouldn’t he lose the Entrepreneur’s relief for claiming gift relief?

Also, I didn’t quite understand point (b) “If the asset qualifies, then gift relief if claimed is applied before entrepreneurs’ relief”.

Thanks.