Entrepreneur’s Relief, which can reduce the rate of Capital Gains Tax from 20% to just 10% for small businesses when they close or sell up could soon be restricted or abolished in the March Budget.
As it currently stands, the relief applies a reduced Capital Gains Tax rate of 10% to the first £10m of qualifying gains, and can be worth up to £1 million for the qualifying taxpayer.
Whilst Budget changes are unlikely to be put into place before April 2020, there is a strong possibility they could take immediate effect from 11 March.
We are currently assisting many clients that wish to accelerate their respective Members’ Voluntary Liquidations (“MVL’s”) and receive initial cash distributions prior to the budget but this window of opportunity is imminent. Please give Paul or Tom a call immediately if you have any clients who currently qualify for this relief and wish to accelerate their respective MVL to ensure they do not miss out on the current 10% tax rate.