18% Capital Gains Tax – a hit or miss for the UK entrepreneur? June 12, 2008
Posted by businessgrowthmastery in Economic Environment, Entrepreneurial, Financial Management, Leadership.Tags: business growth, capita gains tax, entrepreneur, growth businesses, support business growth
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The UK Chancellor announced recently that the rate of Capital Gains Tax will increase by 80% in April 2008.
After years of so called encouragement to enterprise, although with all of the additional red tape and stealth taxes, I’ve never been sure about the underlying motives, the new Chancellor announced that he is ’simplifying’ the Capital Gains Tax rules!
Put simply, this creates a set 18% rate across the board and does away with the taper relief system where business assets held for over 2 years would attract a CGT rate of just 10%.
So, is this simply another tax raising scheme for the Government? On the face of it, I believe that it is!
Especially for honest business entrepreneurs who are looking to build long term returns. A business owner who can sell his/her business before April 2008 will pay only 10p in the £, as long as they have owned the business for over 2 years. From April onwards, they will pay 18p in the pound!
But are there any winners?
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