Rumours
There has been a lot of press speculation recently that, following the calls for a shake up in the tax breaks enjoyed by the private equity industry, the Chancellor may change capital gains tax for everyone.
According to the FT, the Chancellor is considering an increase in the effective rate of capital gains tax from 10% to 20% for businesses assets e.g. shares in unquoted trading companies and partnership goodwill. Additionally, he is apparently proposing an increase in the taper relief period from two years to five years.
The reforms were allegedly discussed in meetings between Treasury officials and private equity representatives. This may be a relief to the private equity industry but, unless some distinctions are made, it is very bad news for other business owners.
Watch this space!
The reforms were allegedly discussed in meetings between Treasury officials and private equity representatives. This may be a relief to the private equity industry but, unless some distinctions are made, it is very bad news for other business owners.
Watch this space!
