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What a Relief? - Entrepreneur's Relief
The Chancellor, Alistair Darling, on 24th January 2008 confirmed the government's plans to overhaul Capital Gains Tax to a flat rate of 18% from 6th April 2008.
Alistair Darling has been under increased pressure from the business world since he announced changes to the Capital Gains Tax system in his pre-budget report on 9th October. The lobbying seems to have worked as the Chancellor announced on 24th January 2008 the introduction of Entrepreneurs' Relief.
Entrepreneurs' Relief will allow the first £1 million of gains to qualify for relief charged at an effective rate of 10 per cent. Any amount over the £1 million will then be charged at the flat rate of 18%
Fiona Dillon Partner and Head of Private Client at JMW Solicitors Manchester comments "although the title Entrepreneurs' Relief implies concessions for entrepreneurs, in reality it will be of little assistance to true entrepreneurs who often make profits in excess of £10 million. However the £ 1 million concession will be welcomed by small businesses and trustees holding business assets in certain circumstances."
Partner and Head of Private Client
Member of the Society of Trust and Estate Practitioners