Entrepreneur Relief - how to calc 50% of working hours

[Nicetoknow]

Hi. I work 38 hours a week as an employee for my employer and separately I have my own company, of which I am a 40% shareholders. I work in this company evenings, weekends and

I would like to sell this company within the next 4 years ( with agreement from other shareholder )

My question is, would I be excluded from entrepreneurs relief due to my other job?

If yes, would reducing my days in my 'day job' to for example 4 days get me over the line? Or would revenue take 'working hours' as a standard 40 hour week.

"The individual must have spent not less than 50% of their working time in the service of that company (or the group, as appropriate) working in a technical or managerial capacity and must have done so for a continuous period of three out of the five years ending with the disposal of the shares"

Thanks

 

[Ravima]

I'd be inclined to get professional advice on this.

 

[Nicetoknow]

I'd be inclined to get professional advice on this.

Thanks, probably best

 

[ITGuy2019]

Thanks, probably best

I wonder if you could share the outcome, if you ended up getting professional advice?

I am in a similar position - working in a number of businesses, one of which is being acquired - so I'm wondering has anybody been in a similar position and what Revenue asked for as evidence? Do Revenue typically query Entrepreneur Relief Claims? Any other input appreciated.

 

[Gordon Gekko]

Unsurprisingly, Revenue have a civil servant’s view on how entrepreneurs think and act.

“Now I’ll stop thinking about this business and think about that one”

The reality is that entrepreneurs typically think about these things all the time.

But based on the legislation, I think the OP would have a problem.