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Some improvement on CGT but private company bosses still worse off
Published January 2008
Chancellor Alistair Darling’s CGT announcement was an improvement on his original proposals but it will still leave most business owners, and particularly owners of private company shares, in a worse position post April 6, 2008, according to tax experts at mfg Solicitors.
Tax and trust manager Steven Holden said: “For sole traders or partnerships, the first £1 million of gains will be taxed at ten per cent, however the £1 million is a cumulative lifetime total.
“The conditions are not as all encompassing as Business Asset Taper Relief (BATR) under the current regime. To qualify for relief on shares the individual must be an employee or officer of the company with a minimum five per cent stake.
“Under the current regime you get BATR on assets used in anyone’s business, from April 6, 2004, but now it appears that relief will only be given for the whole or part of the business, rather than individual asset sales.”
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