Time to Sell Up
22 September 2014
A recent article in the Sunday Times Business section highlighted the growing number of SME owners hoping to sell up prior to next year’s general election.
There are suggestions that the ‘Entrepreneurs Relief’ tax break will be made less generous or scrapped if Labour wins. Currently, business owners who sell up are subject to capital gains of 10% up to £10 million, which compares very favourably to the standard capital gains rate of 28%.
John Allan, of the Federation of Small Businesses, said, “ It’s important we maintain, and where possible build, on this relief and other tax incentives that encourage people to join the engine room of economic growth embodied by Britain’s sole traders and small businesses.”