In the News
IMPORTANT CHANGES TO CAPITAL GAINS TAX from 6th APRIL 2008
The government has within the last few days announced a new relief from Capital Gains Tax(CGT) known as ‘ Entrepreneurs Relief ‘ for gains arising from the disposal of business assets
The first £1 million of gains that qualify for relief will be charged to CGT at an effective rate of 10% .Gains in excess of £1 million will be charged at the future flat rate of 18%.
Industry groups and small firms have broadly welcomed the lower rate, after fears that the new flat-rate plan would act as a brake on new businesses.
The chancellor first announced changes to CGT in October's pre-Budget report.
The key changes still remain and will take effect from 6 April 2008
• Taper relief is withdrawn and replaced by the flat rate of 18% on all gains
• Indexation allowance is withdrawn
It is extremely important therefore that all businesses consider their Capital Gains position as soon as possible and before 5 April 2008 and plan accordingly
For further information please contact Patrick Lydon at patrick@warings.co.uk
29th January 2008