Capital Gains Tax CGT Concession For Entrepreneurs

Capital gains tax (CGT) has received a minor boost today as Chancellor, Alistair Darling, confirmed a minor u-turn on proposed changes to capital gains tax in April 2008.

Currently,  you are able, provided you have held business assets long, to receive a taper relief discount on capital gains taxes on the sale of business assets such as shares to down to only 10% capital gains tax CGT.

Capital gains tax CGT rates will change in April 2008 to a flat rate of 18%.  Meaning that many business entrepreneurs woud suffer if they sold their business.  This was seen as actively discouraging new business enterprise as capital gains tax rates will be higher.

The proposed change to the new capital gains tax rules will mean that businesses sold for a £1m profit or below will attract 10% capital gains tax and those above with pay 18% capital gains tax.

Our view

At last, some sense from this Chancellor and his advisers.

Useful links:

Learn more about capital gains tax CGT and related topics in the Capital Gains Tax Advice Channel 

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary