The Budget
Three things caught my attention from the budget:
- Lloyds have to lend a significant amount of money to small business’s – I need to research does this include leasing?
- There are more grants available for SME companies – again, undertake what the Government really means for me and my projects – can we take advantage of this?
- Entrepreneurs gains relief raised from £1m to £2m
It’s point three that all entrepreneurs should be focused on. In summary, if you own 5% or more of the voting shares and you are an employee or officer of the business, the first £2m of capital gain will be taxed at 10% as opposed to 18%, an £80,000 tax saving. (There are other important parts to this legislation such as companies that do not qualify; you must hold the shares for three years etc. I do not confess to know them all.)
This is a great incentive for UK business people. For me, it provides added incentive to sell the company(s) for £2m as opposed to £1m. Compare this to working and paying a 50% tax on earnings over £150k, you would in effect have to earn circa £150k to make £80k after tax (give or take a few pounds and adding in employers and employees NI.)
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