The looming shadow of potential tax changes has set the business world abuzz with uncertainty and urgency. Behind the buzz of the upcoming general election lies a sense of unease among business owners looking to sell their companies. As fears mount around potential increases to capital gains tax (CGT) and limitations to tax reliefs if the Labour Party emerges victorious, a rush to complete transactions before the election is palpable.
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Increased transactions:
- Business owners who had plans to sell are scrambling to expedite deals.
- Chris Etherington, partner at RSM UK, noted the urgency among sellers to trigger CGT liabilities before potential changes take effect.
- According to Tim Stovold from Moore Kingston Smith, there’s a palpable push to finalize transactions pre-election.
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Legislation concerns:
- While Labour’s manifesto did not outline immediate CGT changes, speculation and worries persist.
- Ceri Vokes from law firm Withers highlighted that inquiries about potential CGT increases have surged in recent weeks, causing anxiety among business owners.
- Taxation strategies:
- To navigate potential changes, individuals are exploring strategies like transferring business assets to younger generations and setting up trusts or company structures ahead of the curve.
- Estate agents are witnessing a surge in property sales, especially among buy-to-let landlords looking to accelerate deals before any CGT hike.
Amidst the uncertainty and hustle, there’s a sense of strategic maneuvering among property investors and business owners. While the tax landscape remains unpredictable, the current climate calls for proactive measures. As the business world brims with anticipation and apprehension, agility and preparedness become crucial tools in navigating an evolving financial landscape. Stay informed, stay prepared, and perhaps most importantly, stay proactive.
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