Entrepreneurs’ Relief
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 Links:
ICAEW
website |
