Entrepreneurs Relief – the Capital Gains Allowance at a rate of 10% for qualifying shareholders has been extended to £5m.
- Capital Gains Allowance – entrepreneurs relief raised to £5m
Whilst the head-line Capital Gains Tax was raised to 28% in the emergency budget leaving an individuals capital gains allowance at £10,100, the coalition government have reduced the negative consequences for business owners and entrepreneurs. Entrepreneurs Relief, currently chargeable at 10%, has been extended to the first £5m of an individual’s lifetime gain.
The move is hoped to kick-start the private sector economy by encouraging entrepreneurial investment and restoring dynamism to corporate ownership. As a result many business owners are considering their options going forward amidst an increased appetite from both domestic and overseas acquirers coupled with the increased capital gains allowance on the sale of shares in private companies.