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Government releases draft "entrepreneurs' relief" legislation

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The Government has released its draft legislation for its controversial "entrepreneurs' relief" scheme, which will replace the current Capital Gains Tax taper relief regime when the next tax year begins.

This u-turn was originally announced in January 2008.

From 6th April 2008, the current Capital Gains Tax taper relief will be abolished, and replaced by a single 18% CGT rate on the disposal of business assets.

Following strong opposition from various business organisations, the Government has provided a "concession" to allow a 10% rate on the first £1 million of business asset disposals. This is a lifetime allowance, the benefit of which will presumably be eroded by inflation.

You can read a summary of the legislation here, together with HMRC's FAQ section.

Published on Feb 28, 2008

Further Reading

Joy for contractors as Self Assessment form-filling to become less of an ordeal Tax Rates + Allowances: 2008-9 Budget 2008 - How IT Contractors are affected Osborne calls for Corporation Tax cut Government releases draft "entrepreneurs' relief" legislation Year-end IT Contractor tax saving guide IT Contractor Guide to Corporation Tax Chancellor delivers Capital Gains Tax u-turn

 

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