Capital Losses and Entrepreneurs Relief

If you have capital losses you can offset these against any gain that arises on the disposal of your shares in your company/business. In terms of Entrepreneurs Relief, based on the provisions released to date, you'll be offsetting the losses against the capital gain that arises after Entrepreneurs Relief. Example Jeff is selling the shares in his trading company, JKF Ltd. He will be realizing a gain of £100,000 on the disposal of his shares. Entrepreneurs Relief is due at 4/9ths to reduce the gain to £55,555. Jeff has capital losses of £20,000 that arose on some share disposals three years previously. The losses will be offset against the gain, reducing the gain to £35,555. After the annual exemption, a gain of around £26,000 would result.