Deal-maker warns over CGT hike

A NORTH West deal-maker is warning that businesses need to put plans in place now in preparation for a potential hike in Capital Gains Tax (CGT) next year.

Gary Houghton, corporate finance partner at the Manchester office of accountants  Baker Tilly, believes that a further rise in CGT could be on the cards  and could catch entrepreneurs off their guard.

He says:“Given the current state of public finances, tax rises seem inevitable and an increase in the CGT rate may be one of the first to be implemented by whichever party forms the next government.

“Though a CGT hike will be deeply unpopular with many business leaders, it is unlikely to be controversial with the electorate as a whole and could appear in a number of election manifestos.

“The average company sale takes around six months to complete and we therefore recommend that business owners review their strategic options now.

“There are a number of exit routes that remain open, however business owners that want to realise value for years of effort spent developing their business, particularly those with one eye on retirement, need to take proactive steps now to manage their future before their options become severely limited.”