Newsletter Winter 2007
Chancellor Announces Capital Gains Tax Concessions
After a period of intense lobbying from organisations representing small businesses, the Chancellor, Alistair Darling, has announced changes to his planned reforms for Capital Gains Tax, due to be implemented in April 2008.
Mr Darling announced that the new 18% CGT rate would stay in place but that a special entrepreneurs relief would be introduced.
This will give business owners a 10% charge on lifetime capital gains of up to £1m. This is the same rate as the current CGT rate with 2 years taper relief.
Above this level the 18% charge will be levied on all sales of business assets after 6th April.
As well as small business owners, investors who have at least a 5% stake in a business will qualify for the relief.
This is good news for shareholders of small and medium sized companies who are thinking of selling.
Thinking of Selling your Company? Contact ACF for a confidential free valuation and consultation.