Are you up to speed with changes to Capital Gains Tax for 2016/17?

Condies reminds SMEs of changes to Capital Gains Tax and Entrepreneurs’ Relief as introduced in the Finance Bill 2016 

Capital Gains Tax (CGT) rates for 2016/17 have been reduced from 18% to 10% for basic rate taxpayers, while for higher rate taxpayers the rate on gains over the unused part of their basic rate tax band will be charged at 20% (previously 28%).
A number of changes relating to entrepreneurs’ relief are also set to be introduced, including:
  • Associated disposals – relief will be due (subject to conditions) on privately-held assets when the accompanying disposal of business assets is to a family member ž
  • Disposals of goodwill – relief will be due (subject to conditions) when a business is transferred to a company controlled by five or fewer people or directors ž
  • Extension to long-term external investors – this applies the 10% CGT rate to growing gains on ordinary shares inan unlisted trading company.
Announcing the changes in his Budget 2016 speech, chancellor George Osborne said: “We’re putting rocket boosters on the backs of enterprise and productive investment.”
Contact Condies to discuss any aspect of CGT or Entrepreneurs’ Relief

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Condies is a progressive chartered accountancy practice with offices in Dunfermline and Edinburgh. The firm was established in the 1920s and has a growing client base throughout Scotland, ranging from individuals and family businesses to professional partnerships and large commercial companies. Condies offers a range of compliance and value-added services and specialises in a variety of industry sectors.