The Chancellor has recently written to the Office of Tax Simplification (OTS), calling for a review of the UK’s Capital Gains Tax (CGT) regime in an effort to reduce the c.£350bn public spending deficit resulting from emergency COVID-19 spending.
The review is designed to identify administrative and technical issues as well as scenarios where the present CGT rules do not meet policy intent. Consideration will be given to the current regime of allowances, exemptions, reliefs and the treatment of losses within CGT, as well as how gains are taxed relative to other sources of income.
The Chancellor is expected to announce any changes to the CGT regime in his Autumn 2020 Budget.
Click here to view Gambit's overview of the review and the anticipated changes to the CGT regime.
Many business owners contemplating a disposal were significantly impacted by the reduction in the lifetime limit on Business Asset Disposal Relief announced in March 2020. Any further changes announced in the Autumn Budget may be effective immediately. Shareholders should consider advancing succession planning and business exit discussions with a trusted advisor ahead of this deadline in order to conclude transactions within the current tax regime.
If you would like to discuss the options available and considerations in preparing your business for exit, please contact a member of the team.