The increase in Entrepreneurs Relief makes selling your business more attractive
Introduction
Alistair Darling’s latest budget has doubled the amount of Entrepreneurs Relief available to individuals who sell their businesses from £1m to £2m meaning that any gains on businesses of up to £2m will now only suffer tax at 10% instead of the normal tax rate of 18%.
This enhances the tax advantages available to working shareholders (including spouses), provided that they own greater than 5% of the company and have done so for at least a year prior to the sale. This could potentially save them an additional £80,000 in tax payable on the sale of their business.
What does this mean for Business Owners?
The increase to £2million is effective from 6 April 2010 so if you are considering selling your business, now is the time to put those plans into action as, post the General Election, these rules could change again meaning that tax liabilities on business sales could increase to help the Chancellor balance the books.
With the UK economy beginning to show signs of recovery from the global recession, business owners who have postponed their exit planning to wait for better times may begin to review their strategic options to take advantage of this tax change before it changes again.
Our process of selling businesses is designed to maximise the value achieved for Vendors. For more details on our services please click here.
Contact details
If you are interested in discussing your exit options with us, we would be happy to meet confidentially to discuss your situation. Please contact Marc Fecher or Darren Murphy on 020 7566 3583 if you would like to arrange a meeting. Alternatively please fill out your details and we will call you.
We maintain our own database of buyers looking for business, and offer free initial consultations to those looking to discuss their options.
