2019-20 SA Returns - Claims for Entrepreneurs’ Relief (now Business Assets Disposals Relief) possibly showing as claims for Investors’ Relief

HMRC Wealthy Forum have provided a briefing to the HMRC Wealthy Forum about an issue with some claims to Investors’ Relief (IR) and Entrepreneurs’ Relief (ER) (Now known as Business Asset Disposal Relief) made in 2019/20 returns. Further details from HMRC are below.

This is the first year where claims to Investors’ Relief (IR) are possible. If you are making the claim in the return, you should enter the amount of the qualifying gain in Box 49 on SA108. The relevant 3-letter code for the claim is INV.

For claims to Entrepreneurs’ Relief (ER) the relevant box on SA108 is Box 50 and the 3-letter code is ERL. Further information can be found in the help sheets: HS308 (Investors’ Relief) and HS275 (Entrepreneurs’ Relief) and the Capital Gains Summary Notes available on gov.uk.

HMRC has identified several returns where it appears that claims to ER have been submitted using the code ‘INV’ with gains showing in Box 49. The reasons for this vary but there may be issues with some software packages used to file returns.

If you have already filed a return that includes a claim to ER, please check it to ensure that the correct code and box has been used. If you identify an error, you can make an amendment and include a short note to explain the change.

For any future claims made on the return, ensure that your software is up-to-date and that any claims are made using the correct 3-letter code and box.