What will happen to Entrepreneurs’ Relief post Election? There has been plenty of media coverage of the spending and revenue raising plans contained in the main parties manifestos. Our tax team have been considering whether there are steps that can be taken to pre-empt some of the possible tax changes that might arise after 12 December.
Richard Coombs, Tax partner at Bates Weston has this to say:
” We have no political bias in our comments. It is a matter of public record that the majority of tax changes affecting business owners are contained within the Labour Party manifesto. For business owners, one of the most concerning promises was not only the removal of Entrepreneurs’ Relief but the alignment of capital gains tax rates to those of income tax. If implemented, a business owner looking to sell their company would go from keeping 90% of the net gain to only keeping 50% (on the basis that Labour also said that they would raise the top rate of income tax to 50%). This and other tax changes will be concerning to entrepreneurs and we recommend immediate action to review the implications should the Labour party win the general election. ”
If you are worried about the possible impact of the proposed tax changes then please get in touch.