Budget 2016: Osborne woos entrepreneurs and external investors

KPMG 2016: Osborne continues to impress entrepeneurs

Dermot Callinan comments on changes made to Capital Gains Tax.

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Commenting on the changes to Capital Gains Tax Dermot Callinan, head of Private Client, commented:

“The existing generous tax reliefs for entrepreneurs are getting better still.

“Entrepreneurs that work for a company and own at least 5% of the shares currently have a "lifetime" cap of £10m of gains which qualify for the 10% rate. The Chancellor now proposes a similar incentive, that is available only to external investors who do not work for the company or sit on the board, that will also be subject to a lifetime limit set at £10m.

“Whilst this is not a doubling-up of the existing entrepreneurs relief, it is possible to be an entrepreneurs relief investor in one company and qualify for investor relief in another. There will have to be anti-avoidance rules to investment made for genuine commercial purposes.”

Ends

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Budget 2016

Budget 2016

Expert insight and analysis of the Chancellor's 2016 Budget Statement.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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