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Tax raid to hit business owner’s retirement nest eggs

Business owners planning to wind up their business rather than sell will no longer be able to take advantage of the capital gains tax rate of only 18-28% and instead will have to pay income tax at a rate of 40-50%. This is a huge hike that many owners will see as a raid of their pension funds.

Read more here: http://www.thisismoney.co.uk/money/news/article-2075493/Tax-raid-hit-small-firm-retirement-nest-eggs.html#ixzz1iO9FnF7x

There are two ways to avoid this penal tax raid:

1. Pay for a formal winding-up service by an insolvency practitioner or other professional.

The Inland Revenue says this should cost £7,500 for a small business whose affairs are not complicated. However this is a hotly debated issue with many arguing that the figure of £7,500 is grossly underestimated with many business owners incurring considerably more cost.

2.    Sell your business and take full advantage of the lower capital gains tax rate of 18-28% if applicable business owners can take advantage of entrepreneurs relief and only pay CGT at a rate of 10% on the first £10 million of qualifying gains.

Utilising the services of a business broking professional a business owner can sell their business rather than simply wind it up.

This practice incurs much lower rates of tax and can potentially achieve significantly higher values for the vendor.

Call today to discover how we can help you avoid this new winding up tax

Speak to a broker today and discover how you can sell your business and take full advantage of the lower rate of tax offered by capital gains tax and entrepreneurs relief.

0333 3440 778 - info@hhcbs.co.uk

 

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