There is widespread speculation that CGT Entrepreneurs' Relief may be abolished or severely curtailed in the Budget on 11 March. The relief reduces the rate of Capital Gains Tax from 20% to just 10% for gains of up to £10 million when an individual disposes of their business or shares in a private trading company that they work for. The relief can be worth as much as £1 million for those with large capital gains.
Any Budget changes to Entrepreneurs' Relief are likely to take immediate effect on 11 March. That may not concern your clients if they are already in the sale process and are confident the sale will complete before 11 March. But if completion might not happen until after the Budget, or there is no imminent sale in sight, we can advise your clients on how they can still maximise their existing relief by locking in the current 10% rate. They will need to act quickly as any planning needs to be implemented now and completed before 11 March.
For more information, please contact Andrew Goldstone or your usual Mishcon de Reya contact.