After business leaders voiced
their objections to the abolition of taper
relief, the Chancellor introduced a new Entrepreneurs’ Relief
(ER). ER may be available for disposals, reorganisations
and relevant transactions taking place on or
after 6 April 2008.
The main effects of this relief are:
- the first £1m of gains qualifying
for relief will be charged at an effective
rate of 10%;
- gains in excess of £1m
will be charged at 18%;
- an individual will be able to make more
than one claim for relief, up to a lifetime
total of £1m of gains.
Professional bodies are calling for amendment
to the draft legislation as it makes its way
through the Parliamentary system. One
of the issues identified with the new rules
is the problem of “associated disposals” and
whether or not these qualify for relief. An
example would be the situation where an individual
wishes to dispose of the business premises
which he owns personally and lets to the business.
Please do talk to us if you are planning to
dispose of your business, as planning is best
undertaken early.
Internet link:
ICAEW
website |
