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Welcome news for entrepreneurs
06 April 2011
The Chancellor announced in his budget last week that the lifetime limit for entrepreneurs' relief would double from £5 million to £10 million. The increase in the relief will take effect from 6 April 2011 and will be welcome news for those entrepreneurs who are looking to sell or exit their business.
The effect of the change will mean that the first £10 million of qualifying capital gains will be taxed at a rate of 10% with gains in excess of that figure being taxed at the rate of 18% or 28% depending upon the entrepreneur's personal circumstances.
If you are thinking of selling your business (or are looking to acquire a business), it can pay dividends to speak to your legal and other professional advisers at an early stage to ensure that the transaction is structured in the right way generally and for tax purposes.
Our Business and Commercial team has many years experience advising on the sale (and purchase) of businesses' assets or the shares of companies, so please feel free to contact us for a non-obligatory discussion to see if we can help you.
Nick Ball, Solicitor
