Chancellor John Healey is considering boosting income tax take when business owners give their company to their children by tightening rules around commonly used redeemable shares, the Telegraph has reported.
Healey would look to the update to raise hundreds of millions on top of inheritance tax (IHT) business and agricultural property relief changes introduced earlier this year, according to the report, published yesterday (18 October). To do so, Healey could look to change the rules around redeemable shares, the report stated. Under today's regime, family business owners can convert holdings into redeemable shares, which the business is able to buy back using profits. The redeemable shares method currently attracts 24% capital gains tax for higher-rate taxpayers rather than 45% income...
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