You qualify for entrepreneurs' relief on gains arising from all your shares, as you held at least 5% of the ordinary shares for 1 year up to the date the company ceased trading, and you were also a director throughout the last year of trading.
Therefore any shares you held in the company qualify for entrepreneurs' relief, and you will pay capital gains tax at an effective rate of 10% on the capital distribution (after deduction of your annual exemption of £10,100); rather than tax at 28% or 18%.
Preparing your tax return in the year of a divorce can be tricky, so if you would like any assistance please feel free to contact your local TaxAssist Accountant.
By Jo Nockels
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