Revised Entrepreneur Relief

Heisenburg81

Could the following be used as a cash extraction strategy from a company..
Director who owns property leases it to his company for the purposes of its trade.
Property qualifies for entrepreneur relief if disposed.
Can he charge a substantial premium on a 50 year lease which then counts as a part disposal for CGT at 10% rate. Nominal amount assessed as IT.
Proceeds of premium then credited to the Directors Loan Account.
On eventual disposal the property could qualify for Retirement Relief if sold at same time as shares so the reduction in cost from earlier part disposal not an issue.
Any anti avoidance around this I guess would be in the area of the premium being excessive?

dogsears

Where the asset being disposed of is not shares it must be in use in a trade carried on by the individual. That doesn't include being used by a company owned by the individual.

Are you possibly including certain definitions that apply for the purposes of retirement relief? One of the major criticisms of the entrepreneur relief (original and revised) is that it seems like it ought to line up with other reliefs in terms of definitions etc but is different in several ways. For no apparent benefit.

ixus

Are you sure property qualifies for Ent relief? I don't think it does. Holding assets, development land and rentals don't fit as best i know.

Shares in a company different to assets above.