Our Corporate Tax team regularly produces information
sheets and guides to help its clients understand topical issues or
recent changes in legislation.
Below, we provide links to the most recent updates:
-
Budget overview 2008
Having made many of his big announcements in the pre-budget report
in October 2007, the Chancellor's first Budget speech included very
few surprises. The main changes and proposals are summarised in
this information sheet.
- Increase
of tax on company sales
The Chancellor's Pre-Budget Report on 9 October included a surprise
proposal to introduce a new single CGT rate of 18% and at the same
time abolish CGT Taper Relief (including Business Asset Taper
Relief). These changes will apply to the sales of assets made on or
after 6 April 2008. Business owners considering a sale can make
significant savings by completing the sale before 6 April
2008.
-
Tax reliefs for business angels
If you are an individual making an investment in shares, there will
be many factors to consider, relating to both the commercial and
financial aspects of the transaction as well as tax. The main tax
considerations will normally be stamp duty on the purchase, income
tax on dividends and the capital gains tax (CGT) treatment of any
subsequent sale of the shares. The UK's tax system includes two
special tax regimes designed to encourage investment by individuals
in smaller unquoted trading companies (either directly or
indirectly through a corporate vehicle) by making various tax
reliefs available. These regimes are the Venture Capital Trust
(VCT) scheme and the Enterprise Investment Scheme (EIS). This
information sheet gives a brief guide to how these schemes
operate.
- Capital
gains tax reforms
The Government will be making controversial changes to CGT in April
this year. In an effort to reduce the impact of these reforms, the
Chancellor has announced the introduction of a new Entrepreneur's
Relief which will apply from 6 April 2008. We review the impact of
this new relief, highlighting actions to be taken.
-
Increase of tax on company sales
The Chancellor's Pre-Budget Report on 9 October included a surprise
proposal to introduce a new single CGT rate of 18% and at the same
time abolish CGT Taper Relief (including Business Asset Taper
Relief). These changes will apply to the sales of assets made on or
after 6 April 2008. Business owners considering a sale can make
significant savings by completing the sale before 6 April 2008.
This information sheet summarises the changes and provides advice
on how you can respond to the changes.
