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How do we distinguish between the two ?
I know how to calculate the amounts but confused under which head to put themAloi has been the managing director of Alphabet Ltd since the company’s incorporation on 1 January 2000, and she
accepted XYZ plc’s cash alternative of £6 per share in respect of her shareholding of 60,000 £1 ordinary shares in
Alphabet Ltd. Aloi had originally subscribed for 50,000 shares in Alphabet Ltd on 1 January 2000 at their par value,
and purchased a further 10,000 shares on 20 May 2002 for £18,600.Cherry
Cherry has never been an employee or a director of Alphabet Ltd. She accepted XYZ plc’s cash alternative of £6 per
share in respect of her shareholding of 12,000 £1 ordinary shares in Alphabet Ltd. Cherry had purchased her
shareholding on 27 July 2003 for £23,900.Both cases are cash alternatives but aloi is gains qualifying for e-relief and cherry not qualifying
Is it cuz she wasn’t an employee ?The main rule in respect to entrepreneur relief is the person should be holding at least 5% of the total shareholding in the company as well as he should be the owner or employee for the last 12 mnths for disposal.
Cherry isn’t a employee. Thts y no e-relief.
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