taylorcocks urges business owners to optimise entrepeneurs relief
Leading accountants and business advisers, taylorcocks, are keen to remind business owners to ensure they maximise their potential relief’s to help reduce their liability for capital gains tax (CGT) on the sale of their business.
This comes about following a recent occasion where Paul Taylor, Tax Director of taylorcocks, helped one of their clients to save £80,000 by a simple review of the way in which the business was structured.
Paul Taylor said “Entrepreneurs relief was introduced following the unfavourable response to the changes to the CGT regime that the Chancellor introduced in his April 2008 Budget when taper relief was withdrawn. However, the tax rate on lifetime gains up to £1 million can effectively be cut from 18 per cent to 10 per cent in certain instances.
“It is important to ensure that businesses are structured to maximise this relief where possible. In the present climate everyone is anxious to conserve wealth wherever they can and this provides some help in holding on to a little more from the gains from a lifetime’s work,” said Paul Taylor.
Under the current scheme, and in brief terms, entrepreneurs’ relief will be available in respect of:
- Profit made on the disposal of all or part of a business operated by a sole trader or partnership
- Profit on the disposal of shares in trading companies
- Profits made on the sale of assets used in a business; i.e. buildings, which are sold as part of point 1 and 2 above.
If you would like to know more about how entrepreneurs’ relief could save you money, then please contact taylorcocks on 0370 770 8111 or enquiries@taylorcocks.co.uk and we can consider the best course of action for you to take.
