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Capital Gains Tax
The whole landscape of capital gains tax is changing, following the announcements made in the Pre-Budget Report on 9 October 2007. In one fell swoop, indexation and taper relief are being swept away from 6 April 2008 and replaced by a flat rate tax of 18%. However as a concession following lobbying by the business community a new Entrepreneurs’ Relief of up to £1 million is being introduced.
The Government’s stated aim was to simplify the tax but it is questionable whether this has been achieved. Between now and 5 April 2008 some urgent advice needs to be taken to determine whether advantage can be taken of the reliefs which are shortly to disappear. After 5 April 2008 careful planning of transactions will be necessary to ensure that they qualify for the new relief. There are many assets and transactions which currently qualify for business assets taper relief which will not qualify for Entrepreneurs' Relief.
Our team of tax specialists can guide you through the new rules and ensure that transactions in the short or longer term are planned to best advantage.