The Chancellor has announced a number of changes in respect of the right to claim Entrepreneurs’ Relief (ER) in yesterday’s Budget. For disposals on or after 6 April 2019, the minimum period throughout which the qualifying conditions for ER must be met will be extended from 12 months to 24 months. Furthermore, in addition to … Continue reading Budget 2018: Entrepreneurs’ Relief – holding period for disposal of “relevant EMI shares”
Today’s Budget continued the recent trend of announcing changes to the ER regime. However, unlike previous Budgets, today’s changes generally expand the situations in which ER will be available. The main change is the extension of ER to shares held by individuals who are external investors rather than employees or directors. The Budget materials also … Continue reading Entrepreneurs’ relief – not just for entrepreneurs
George Osborne’s 2016 Budget contains a surprisingly broad range of new tax measures addressing everything from sporting testimonials to oil fields. However, the main changes are as follows. Companies Corporation tax will come down to 17% from April 2020. From April 2017, companies will only be able to use carried forward losses against 50% of their profits above … Continue reading Budget 2016 – headline points
The Chancellor will deliver his 2016 Budget today. Press coverage suggests that the public finances allow him limited room to manoeuvre. We anticipate the Budget will include: final rules on the additional 3% stamp duty land tax on the purchase of second homes; a clamp down on the use of personal service companies; an update on the UK’s implementation of … Continue reading Budget 2016
Universities will often set up spin-out companies to commercialise the intellectual property generated by their academic research projects. Spin-out companies are particularly common in the life sciences and technology sectors. University academics and researchers who have assisted with the development of the intellectual property will frequently receive shares in the spin-out company as a reward … Continue reading Spinning-out entrepreneurs’ relief
As announced in the Autumn Statement, ER no longer applies in respect of disposals of goodwill to a ‘related’ company on or after 3 December 2014. However, the draft legislation revealed that the changes will have a wider impact than originally anticipated. Today’s Budget announces a change to the draft legislation to deal with one … Continue reading Entrepreneurs’ relief in relation to transfers of goodwill
In addition to the changes restricting the application of entrepreneurs’ relief to management company structures and transfers of goodwill, the Chancellor has also restricted the availability of ER on associated disposals of assets. ER is a business tax incentive and therefore applies, subject to conditions, on sales of: unincorporated businesses or interests in partnerships carrying on businesses; … Continue reading More on Entrepreneurs’ Relief: associated disposals
George Osborne announced in today’s Budget: “We will close loopholes to make sure entrepreneurs’ relief (ER) is only available to those selling genuine stakes in businesses”. Having now seen the detail of these proposed changes, we find that he has made some targeted changes to the circumstances in which ER can apply but otherwise left … Continue reading Targeted changes to entrepreneurs’ relief – management companies
Tomorrow’s Budget Speech is likely to have a split personality, being the final Budget of the Con/Lib Coalition Government but also an opportunity for this most political of Chancellors to publicise some of the more electorally attractive policies to be included in the forthcoming Conservative manifesto. This blog post concentrates mainly on the former aspect. … Continue reading Budget March 2015: what are we expecting?
The announcements today by the Chancellor included surprises, confirmed many predictions but some topics were notably absent. Income tax rates – no major review Recent debates on income tax rates have been highly political and will continue to be so as we approach the election. The Chancellor has increased the personal allowance by £500 for … Continue reading Wish you were here: what was missing from Budget 2014?