If the political and financial press are to be believed, then changes to the current capital gains tax (“CGT”) regime in the forthcoming autumn statement are inevitable. The possible changes are likely to make disposals of businesses and assets, including by sale, restructuring, and solvent liquidations, less favourable in terms of tax treatment than currently, meaning that business owners are likely to be liable for greater tax when disposing of assets and exiting successful businesses which they have built up, often over the course of many years.
We can’t be certain of the date on which any changes to the CGT regime will be imposed until we hear from the chancellor on the 30th of October. However, business owners who are contemplating an exit, either to retire or to pursue new opportunities, would be best advised to speak to their professional advisers as soon as possible. We are able to offer advice on structuring transactions and signposting relevant tax and valuation advice.
What is Capital Gains tax?
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.
It’s the gain you make that’s taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000).
This definition and explanation is taken from the Government website for the avoidance of doubt or potential misunderstanding.
Get In Touch
We’d recommend contacting our team to book in a consultation and to assess your options, which you can do by emailing newbusiness@talbotslaw.co.uk or calling us on 0800 118 1500.
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice and should therefore not be acted on without prior consultation with a qualified solicitor or legal professional.