Small firms; Guide to recent tax changes

Capital Gains Tax Although the rate of CGT for gains qualifying for entrepreneurs’ relief remains at 10%, the lifetime limit has more than doubled from £2m to £5m. Subject to satisfying certain conditions, including the maximum limit, gains on disposals of entrepreneurial businesses by individuals and certain trustees will not be taxed at 18% or 28%, but will receive relief to bring the effective rate down to 10%. In determining at what rate(s) an individual should therefore be charged CGT on any other gains, those gains qualifying for entrepreneurs’ relief are set against any unused b...