Whilst the head-line rate of Capital Gains tax was raised to 28% in the emergency budget , 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.

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.  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 CGT after the election, this was a welcome surprise.

Rockworth today launches its refreshed website.  We hope you find the various articles, in particular within the Knowledge Bank and Sector areas, interesting.  We would be very interested in receiving any feedback you may have.

Rockworth advised the management team on the successful Management Buyout of Arkessa Limited from Brulines PLC.  Also advising the management team were Dundas and Wilson LLP.  Brulines were advised by Brewin Dolphin.

Arkessa is a leading pan-European provider of machine to machine communications via 2G & 3G wireless technology.