Whilst the drama of Brexit continues, professionals are considering the potential tax implications that the political uncertainty will have on business owners going forward.
Most owner managed business owners currently qualify for an effective tax rate of 10% using Entrepreneurs Relief (ER) on exiting their business via a trade sale or management buyout. This highly advantageous tax rate has been around for a long time, with governments aiming to encourage entrepreneurship.
Given the high levels of uncertainty surrounding the political environment, it is not unlikely that significant changes may be coming with regards to tax legislation. If this included changes to ER, what would this mean for your plans? Indeed, the influential think tank, The Institute for Fiscal Studies recently questioned the value of this tax break and there have been calls for the chancellor to scrap the relief, perhaps making ER more likely to face scrutiny.
Whilst we cannot predict what will happen in the future, we can advise you on the rules now. Would a proactive approach to securing your exit at an attractive tax rate be worthwhile exploring?
Leading a business through change is a challenge and finding the best route to the future you want requires true expertise. Whether you’re buying, selling or raising finance for a business, our award-winning Corporate Finance team are with you all the way, bringing strategy, insight and conviction to get you the results you really want. If you are considering a transaction, or would like more details on your future plans, then why not drop us a line today to see how we can help make your ambitions a reality.
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Ellie Wilcockson
South Yorkshire's emerging dealmaker of the year 2018, Ellie has worked on a wide variety of transactions in the region, driving deals through to completion and getting the best results for clients.
View my articlesTags: Corporate Finance, Business Taxes
