Wendy Walton reviews the Budget 2011 Tax Proposals
More encouragement for entrepreneurs
The proposed doubling of the entrepreneurs’ relief (ER) lifetime limit from £5 million to £10 million for qualifying disposals from 6 April 2011 is very welcome.
This could lead to a maximum capital gains tax saving of £3.6 million for a married couple. It is therefore even more vital that owners of a business/company review their specific situation to ensure that they will fulfil all the qualifying requirements on a disposal in order to obtain the optimum ER tax benefits.
However it is unfortunate that a form of taper relief or indexation allowance has not been introduced in relation to assets held for a long period of time and that employees with less than a 5% shareholding and certain...
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Wendy Walton reviews the Budget 2011 Tax Proposals
More encouragement for entrepreneurs
The proposed doubling of the entrepreneurs’ relief (ER) lifetime limit from £5 million to £10 million for qualifying disposals from 6 April 2011 is very welcome.
This could lead to a maximum capital gains tax saving of £3.6 million for a married couple. It is therefore even more vital that owners of a business/company review their specific situation to ensure that they will fulfil all the qualifying requirements on a disposal in order to obtain the optimum ER tax benefits.
However it is unfortunate that a form of taper relief or indexation allowance has not been introduced in relation to assets held for a long period of time and that employees with less than a 5% shareholding and certain...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
