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Date of Issue: 24th January 2008
The Chancellor has at last made his long awaited announcement on the future of Capital Gains Tax.
The treasury press release states:
'Entrepreneurs' relief will be targeted on the owners of small businesses, and will apply when they sell their business. The relief will also be available to all employees and company directors who invest a material stake in a qualifying company. It will take effect from 6 April 2008 alongside the rest of the capital gains tax reform package.
The relief will deliver a 10 per cent tax rate for up to the first £1 million of lifetime capital gains. Individuals will be able to claim relief for gains made on multiple occasions up to a cumulative total of £1 million. Gains in excess of the £1 million lifetime limit will attract the standard 18 per cent rate of tax.'
Graham Buckell, Director of Bates Weston's tax advisory team comments;
'The chancellor has softened the blow for business owners who were planning to sell their business post April 2008, however in most cases they are still likely to be paying more Capital Gains Tax than under the old regime'.
At the time of writing we await further details from HMRC. Any business owner considering the sale of their business will be affected by this announcement and should seek advice from their own tax advisor or contact
Graham Buckell at grahamb@batesweston.co.uk. Graham Buckell is the director of Bates Weston's Tax Advisory team, and has over 25 years of experience in all areas of direct tax.
For further details, please contact:
Bridget Charlton, Marketing Manager
Email: bridgetc@batesweston.co.uk
or telephone 01332 365855
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