Business owners looking to sell up urged to act now to avoid losing out in Capital Gains Tax shake-up
BUSINESS owners in Coventry and Warwickshire thinking of winding up their companies should act now to avoid losing out under the anticipated Capital Gains Tax (CGT) shake-up.
The call has come from experts at insolvency practitioners Cranfield Business Recovery, based in Coventry city centre, ahead of June’s Emergency Budget where it is widely expected that there will be significant changes to the CGT regime.
Capital Gains Tax is currently charged at 18 per cent on any profits of more than £10,100 made on the sale of most investments. But reports have suggested that the new regime will hike the rate to 40 or even 50 per cent, potentially hitting those looking to wind up their businesses.
Tony Mitchell, managing director of Cranfield Business Recovery, said: “We’ve already received telephone calls and held meetings with business owners wanting to take advantage of the current taxation rates and not chance what might happen in June.
“A solvent members’ voluntary liquidation is currently a very tax efficient way of releasing capital upon the solvent winding up of the company. Now is the time to be thinking about acting rather than risking higher rates that may be on the way.”
