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Budget 2018: Overnight tax hike for employee shareholders

Overnight tax hike for employee shareholders

Nick Pheasey, Tax partner for KPMG UK comments on the changes to the CGT Entrepreneurs Relief in the Chancellors Budget today.

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Nick Pheasey, Tax partner for KPMG UK comments on the changes to the CGT Entrepreneurs Relief in the Chancellors Budget today:

“Those more likely to be affected will be Private Equity backed businesses who often hold small shareholdings and currently expect to qualify for Entrepreneurs Relief. In effect this means smaller shareholders will be doubling the tax they pay on those shares overnight, defaulting back to a 20% rate. 

“While the addition of extending the minimum qualifying period for which an asset has to be held to qualify for relief from 12 to 24 months does not look unreasonable, the further changes for smaller shareholdings is likely to have a negative impact on the private equity community.”

 

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For further information please contact:

KPMG Press office

T:  +44 (0) 207 694 8773

Bronwyn Huband, KPMG Corporate Communications

T: +44 (0) 734 208 5193

E: bronwyn.huband@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff.  The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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