As expected the Budget saw a rise in the rate of CGT for higher rate and 50% taxpayers from 18% to 28%. This was accompanied by an increase to £5 million in the amount of lifetime gains which can qualify for a 10% rate under entrepreneurs’ relief.
The rise is significantly lower than had been feared (a headline rate of 40% had been rumoured). However the changes have attracted criticism from the private equity sector which had hoped the Chancellor would address the disparities in the application of entrepreneurs’ relief which result in many managers and carried interest holders missing out on the 10% rate. Instead the new regime has reinforced these disparities and widened the gap between those who qualify and those who do not.
Essentially shares will still only qualify for entrepreneurs’ relief if the individual...
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:
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
Home >Articles > Emergency Budget: comment from advisors on the CGT rise
Emergency Budget: comment from advisors on the CGT rise
Janet Hoskins on the CGT rise
As expected the Budget saw a rise in the rate of CGT for higher rate and 50% taxpayers from 18% to 28%. This was accompanied by an increase to £5 million in the amount of lifetime gains which can qualify for a 10% rate under entrepreneurs’ relief.
The rise is significantly lower than had been feared (a headline rate of 40% had been rumoured). However the changes have attracted criticism from the private equity sector which had hoped the Chancellor would address the disparities in the application of entrepreneurs’ relief which result in many managers and carried interest holders missing out on the 10% rate. Instead the new regime has reinforced these disparities and widened the gap between those who qualify and those who do not.
Essentially shares will still only qualify for entrepreneurs’ relief if the individual...
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:
