Budget 2013: CGT relief for sales of businesses to employees

Laura Miller
clock

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 ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot