A key message to entrepreneurs
As George Osborne delivered the toughest budget in over 30 years, the Country now is getting the time to digest the effects and potential outcome.
Leaving aside VAT increases and Government cuts, which for the record are needed, I turn my attention to three key parts of the Emergency Budget.
- An entrepreneur/Director who does own over 5% of shares in a company for over three years can now make a lifetime capital gain of up to £5m and only pay 10% tax. This was £1m and then increased to £2m more recently under the Labour Government. What an amazing incentive for all British business owners. It is the biggest message of “Go and get on your bike” I have seen since the Thatcher years.
- Corporation Tax rates are going down, ensuring we have some of the lowest rates in Europe
- Tax relief on acquiring capital equipment is decreasing significantly from April 2012 – great if you run a leasing company.
Point one and two above clearly illustrates the Government are backing business people. It is a clear message to us all – we will reward you with a very low tax rate if you can successfully build, develop and sell a company for a profit.
Point three does reduce the benefit of buying capital equipment in a business – but does help leasing companies sell a lease rental agreement.
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