| 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 |
