Whilst there was not a great deal coming out of yesterday’s budget, the one small piece of good news for those involved in M&A was the doubling of the ‘Entrepreneurs Relief’ threshold that applies to uk capital gains tax. The level has been moved from £1m to £2m, whereby business vendors who have held their shares for longer than 1 year are able to claim the first £2m at a reduced rate of 10%. Whilst many commentators have been speculating about the possible increase in UK Capital Gains Tax after the election, this was a welcome surprise.
UK Capital Gains Tax
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