Posted by: the3rdi | March 28, 2010

TIME FOR A SHARP EXIT?

A leading corporate lawyer says that now may be the time for entrepreneurs in the region to consider their exit strategy following Alistair Darling’s budget yesterday.

Nick Taylor, head of Higgs & Sons’ corporate team and recommended by Chambers as a leader in his field, says that the doubling of entrepreneurs’ relief and the confirmation that there will not be an increase in the main rate of capital gains tax (CGT) currently at 18% is excellent news for local business owners. “My advice to local entrepreneurs would be to think quickly and seriously about their exit strategy now because the goalposts could move again in the near future.”

At the moment, the first £1m of lifetime gains for qualifying individuals exiting their businesses is taxed at an effective rate of 10% under entrepreneurs’ relief. The threshold will now increase to £2m. Nick says that for people considering selling their business, from a tax point of view, now could be a really good time to do it: “The doubling of the threshold is designed to enable entrepreneurs to benefit more from their effort and investment, with the first £2m return taxed at 10% and subject to CGT at 18% above £2m.”

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