 May
2008
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 Link:
ICAEW
website |
