I recently bought some shares of one trading company. I also work for this company for over 10 years. My friends told me that it is considered as business asset and CGT payable. Is it true? Can I qualify for any relief of CGT? Can I reinvest that money in different shares?
Asset is considered business if it is used for purpose of a trade or for the purpose of your full time employment. Shares are also considered as business asset if the company is qualified. I believe that shares of a trading company qualify as business asset. You should also determine whether the company was qualifying company while you were an employee. It is also possible that the company was qualified in only one period and not the other. To obtain the relief you need to own shares for some period of time, but you should also consider the annual exemption rule. There is also possibility of deferring capital gains by reinvesting in different qualifying shares.
