Budget 2013: CGT relief for sales of businesses to employees

Chancellor George Osborne has announced in the Budget that the government will give capital gains tax (CGT) relief on sales of businesses to their employees.

CGT is a tax on the gain or profit made when someone sells, gives away or otherwise disposes of something. It applies to assets such as shares or property. Everyone has an annual tax-free allowance for CGT known as the 'Annual Exempt Amount'. The Annual Exempt Amount for the tax years 2011-12 and 2012-13 is £10,600 for each individual and £5,300 for most trustees. If overall gains for the tax year are above the Annual Exempt Amount, CGT will have to be paid on the excess. Rates of tax on capital gains for 2011-2012 are 18% and 28% for individuals - the rate depends on the total ...