Anderson Shaw

Emergency Budget Increases Gain Amount Qualifying for 10% ‘Entrepreneur’s Relief’ 22.06.2010

As those of us, without an axe to grind (!), expected, the general increase in the rates of Capital Gains Tax has not impacted business owners considering a sale of their business.  In fact, it is quite the reverse, because the Chancellor has enhanced the relief available for business owners on the gain made on selling a business from the first £2m of gains to the first £5m.  This is good news indeed and, I think, reflects the fact that we have a business-friendly Government.   

Although it may not be obvious, I have reached the conclusion, over a number of years, that selling businesses as going-concerns is good for the UK economy.  New owners generally come in to the business with fresh ideas, additional investment and a longer term outlook and this, of course, secures and grows employment for the 'workers'.  It is, in fact, a form of renewal or even, recycling - good for the business environment!

Business success, however it is achieved, is the only way to lift the UK economy out of the mess it is in and be able to fund a sensibly sized public sector.  Thank goodness 'Dave and Nick' have had the good sense to reverse Labour's job tax and ease Corporation Tax rates downwards.