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Posted Wed, 03 Jan 2024 00:04:21 GMT by
Hi, I am a shareholder who has sold his shares into an Employee Owned Trust. I understand this sale to be free of Capital Gains Tax and will be receiving six-monthly or yearly payments until the EOT has finished buying me out. How do I declare this on my Self Assessment form? Thanks
Posted Wed, 10 Jan 2024 11:58:23 GMT by HMRC Admin 32

Please have a look at CG67800C.

CG67800C - Employee-ownership trusts

If you believe the conditions for the relief are met, then the claim can be made in a Self Assessment Tax return.

The capital gain would be declared in the tax return of the year of disposal, on the capital gains section.  

The whole amount should be declared, even if the payments are being paid over a period of time.

Relief would be claimed by reducing the gain by the amount of relief being claimed and using the code 'EOT', on the drop down, to identify the relief being claimed.

In the additional info box we would need to know information to identify the settlement, the name of the settlement and the address of its registered office, and the date of the disposal and the number of shares disposed of by the customer, as per CG67810.

Thank you.

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