In a welcome move, the Chancellor announced that gains which qualify for Entrepreneurs’ Relief, but which are deferred into Enterprise Investment Scheme (EIS) or Social Investment Tax Relief (SITR) investments, will continue to qualify for the relief when the deferred gain becomes taxable. Previously, the deferred gain would only qualify for Entrepreneurs’ Relief if the conditions were still met when it became taxable, which was rarely the case.
This change is effective for gains arising on or after 3 December 2014.