For entrepreneurs building a business, the prospect of being able to sell up with an attractive 10% capital gains tax rate is a big incentive, so it’s good to see that the Chancellor has rejected proposals to scrap the relief. What he is proposing, however, is to raise the bar for relief so that, in theory at least, it will go to the ‘right people’. Owners will need to hold their business interest for a two-year qualifying period rather than just one as at present. For most business people that shouldn’t be a problem, but it will inevitably make qualifying that bit harder, particularly where it’s necessary to line up shareholdings in advance of a sale. All the more reason for advance planning.
For more information view our full Budget report, or if you would like to discuss anything raised, please contact Clare Munro firstname.lastname@example.org 020 7490 7766 or speak with your usual contact partner.