Enter Your E-mail

In response to concerns from business representatives over the proposed capital gains tax changes due to take effect from April 2008, the government has announced a new capital gains tax relief for entrepreneurs.

Entrepreneurs' relief will be targeted on the owners of small businesses, and will apply when they sell their business. The relief will also be available to all employees and company directors who invest a material stake in a qualifying company. It will take effect from 6 April 2008 alongside the rest of the capital gains tax reform package.

The relief will deliver a 10 per cent tax rate for up to the first £1 million of lifetime capital gains. Individuals will be able to claim relief for gains made on multiple occasions up to a cumulative total of £1 million. Gains in excess of the £1 million lifetime limit will attract the standard 18 per cent rate of tax.

This announcement follows major reform of the capital gains tax regime in the 2007 Pre-Budget Report which is designed to deliver a more sustainable, simplified and internationally competitive system.

Link

HM Treasury: New tax relief for entrepreneurs