The business sale marketplace in the UK has reacted nervously to the latest announcements from the coalition government on capital gains tax proposals.
Whilst the government has said that there would be generous allowance for business owners and entrepreneurs, no-one really knows for sure how the supposed exemption for business asset holders will work.
The first question being asked is how will business assets be defined in the legislation?
The second is, will there be an ‘exemption’ or an ‘allowance’ for business asset holders. The two could be interpreted very differently, with an exemption meaning that the existing rate of 18 per cent could stay intact, alongside the Entrepreneur’s Relief at 10 per cent for the first £2 million of business sale transactions.
An ‘allowance’ could mean that a new rate of CGT could be set for disposals of business assets, somewhere under the as yet unknown new rate for non-business assets. Which could mean, in theory, a significant rise for business owners. Particularly concerned are owners of businesses with a high proportion of their assets in property or cash.
Business brokers and corporate finance houses are reporting that deals currently in the pipeline are being forced through quickly in order to beat Budget day, expected to be some time in June.
The consensus amongst small to medium business owners is that any increase in capital gains tax for business owners will be bad for them, and the economy at large, in that it will remove the incentive to re-invest sale proceeds into new business acquisitions.
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
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