Prior to the Chancellor’s recent announcement that he was cancelling his Autumn Statement, it was widely believed capital gains tax (CGT) rates were to be increased to recover part of the cost of the government’s unprecedented Covid19 support package. The detail of these changes was not considered (or at least publicised), but the options were limited – an increase in the rate of CGT or, more drastically, the abolition of CGT altogether. The latter would be a game changer, gains would simply be subject to tax at marginal income tax rates – 45% for amounts over £150k.
With these changes now pushed back to the Spring budget, a window of opportunity exists for business owners to initiate a sale, buyout or restructuring exercise and benefit from existing CGT rates. If such a business ownership change is being contemplated in the short to medium term anyway, delaying could be a potentially costly exercise.
Magma has extensive experience in advising SME businesses on mergers and acquisitions, ownership restructurings and business transitions. So, if you have been thinking about a change, now could be an important time to speak to us.
If you would like to know more, please contact Shaf Bheda on 01788 539000 or [email protected]