‘No time like the present to sell’ says expert
NORTH West business owners considering selling up. may find now is a good time to do a deal, according to accountancy firm Horwath Clark Whitehill.
Steve Livingston, partner at the firm’s Manchester office, believes there are opportunities to take advantage of generous tax concessions announced in the emergency Budget.
In particular, Entrepreneurs’ Relief was more than doubled – offering important capital gains savings.
He says: “For those thinking of selling up it is worth considering whether now may be the right time to exit.
“The tax regime for the disposal of a family business is better than it has been in a long while, and there is no certainty of this continuing.
“There are signs of more corporate finance activity starting, and sales are occurring at realistic prices. Early planning can improve the eventual price, in addition to ensuring the full benefits of Entrepreneurs’ Relief are obtained in order to lower the tax bill.”
Under the previous government, the sale of unquoted shares by an entrepreneur was only taxed at 10% in relation to the first £1m gain. This was later increased to £2m.
And, although the new coalition pushed the general capital gains rate for higher-rate tax payers to 28%, they kept the 10% Entrepreneurs’ Relief rate and increased the threshold to £5 million.
“This now represents a very significant benefit,” stressed Mr Livingston.