New Government – Capital Gain or Capital Groan….

It is widely expected that the new Chancellor will hold her first Budget in mid-September 2024 or early October 2024.

A key question is whether she will include any changes to Capital Gains Tax (“CGT”) in her first Budget. The Labour manifesto remained silent on this issue and the Prime Minister refused to rule out any changes (“CGT”) prior to the election.

One of the options business owners have when their business has reached the end of its useful economic life is to place the company into a Members’ Voluntary Liquidation (“MVL”). Any distributions received by the shareholders are taxed as capital gains rather than as income. If you have any clients looking to place their companies into an MVL, it may be worth bringing forward the initiation of the liquidation process given a potential Budget is only two months away to avoid any nasty surprises!!!

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