There has been widespread speculation that the Chancellor will look to increase CGT rates up to 45% in his forthcoming Budget. This is despite analysis suggesting that equalising CGT rates with income tax rates would cost the Treasury £7.76 bn pa as people change their behaviour to avoid the punitive tax increase.

This means that the effective rate of tax (including corporation tax) would be 59% in the most extreme cases!

If you have any clients who are considering placing their companies into a solvent liquidation, there is still limited window to do so prior to the Budget.