With the historical landslide win for the Conservative party, the country holds its breath and waits for the details of Brexit to be rolled out across the UK. We wait to see what trade deals will be agreed, and with whom; and whether the country will collapse or thrive under the new legislations imposed upon us; and the ultimate impact of these changes on business confidence.
But where does this leave SME’s?
Before the election we released a blog about Entrepreneurs’ Relief and the tax that is lost each year through the reduced rates on Capital Gains Tax. Originally introduced by Gordon Brown’s as Chancellor for a Labour Government.
Now, with Johnson’s “High-Wage, High-Skill, Low-Tax” Tory Government, they will be seeking to level the playing field when it comes to paying tax. Could it now just be a matter of time before we see an increase in Entrepreneurs’ tax, or a decrease in the lifetime limit on qualifying assets being sold?
According to numerous business reports, the rate of business sales had already started to increase due to uncertainty surrounding the costs to export goods once the UK leaves the EU. This has been compounded by fears that if Johnson meddles with Entrepreneurs’ Relief the business climate may no longer be as attractive for start-ups.
The question many business owners are now asking is ‘Should I sell my business?’
There are no sure answers yet, we continue to wait and see what the future holds under the new Government and what legislation rolls out after Brexit.
If you have any concerns to what this could mean for you and your business, we are here; we can’t predict what the future holds, but we can help you get your business in the best possible shape to meet challenges and make the most of any opportunities.