5 November 2007

Glimpse of hope for small business owners

Following the Chancellor's shock announcement in the Pre-Budget Report ("PBR") to withdraw taper relief, it is understood that the Treasury now plans to introduce a form of capital gains tax retirement relief in the next Budget.

Following the PBR, business organisations sought meetings with the Chancellor to look at ways to reduce the effect of the withdrawal of taper relief on owner managed businesses. It is following these meetings that it is reported that the Chancellor will announce a new capital gains tax relief on the sale of business assets on retirement. The value of the relief is unknown, but most commentators are suggesting £100,000.

If you think you have of heard Retirement relief before you have! It was abolished back in April 2003 by the then Chancellor, Gordon Brown and was replaced by taper relief.

If you are currently considering selling business assets please contact your usual Hazlewoods tax contact to discuss the implications of this proposed change and those announced in the PBR.