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