The government has announced a new "entrepreneurs’ relief" from Capital Gains Tax - a rate of 10% on sales of assets up to £1m. Beyond that value, assests will be taxed at 18%. These changes, together with the withdrawal of taper relief and indexation allowance, will take effect as of 6th April 2008.
For further information, see the Institute of Chartered Accountants Tax Faculty release.
It is sensible for holders of business assets particularly to consider the implications of the changes before the beginning of the 2008/9 tax year on 6 April. The effects of the changes will, in many cases, be very substantial and there is no scope for 'retrospective' tax planning in relation to these changes. Business assets are also important from an IHT perspective and what may be 'good' from a CGT point of view may be 'bad' from an IHT point of view.
Contact us for advice on all matters relating to family business and taxation.
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