UK Chancellor Philip Hammond today delivered his Autumn 2018 Budget.
A change to the minimum period qualifying rule for capital gains tax via entrepreneurs relief will effect the tax paid by some business owners on selling their businesses. Entrepreneurs’ relief reduces the amount of Capital Gains Tax paid on disposals of businesses, or shares in a personal company, by offering a reduced 10% tax rate on up to £10m worth of lifetime gains.
The Chancellor announced that from 6 April 2019 the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 months to 24 months. The extension of the qualifying period is designed to dis-incentivise shareholders from making a quick sale. There had been calls from both sides of the house to scrap the relief.
Read the Policy Paper for the 2018 Budget here. The details of the change to entrepreneurs relief are given in section 4.7 Enterprise Tax.
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