Kent Solicitors

Last year, the Government announced a change to capital gains tax (CGT), to take effect April 2008 so that, amongst others, people selling businesses (which they may have built up over several years, employing people etc) were taxed at 18% not the usual 10%
After much lobbying, the Government has announced a new entrepreneurs relief. The first #1m of gains on qualifying assets will be reduced to 5/9 of their actual amount, so that the effective rate of tax will still be 18% x 5/9 = 10%.
The #1m is a lifetime limit, to cover all qualifying gains on disposals made after 5 April 2008.
Qualifying assets include trading businesses, stakes in trading partnerships and shares in trading companies.
Shares will only qualify if the investor has at least a 5% stake and works in the business.
Further changes may occur before this becomes law

Labels: Capital Gains Tax