The Chancellor left capital gains tax (CGT) broadly unchanged in the 2018 budget but has tweaked rules on tax relief for entrepreneurs by extending the qualifying period of the tax break from 12 months to two years, with the aim of encouraging longer-term investment in British business.

Entrepreneurs pay a lower rate of tax at 10pc, compared to the standard rate of 20pc, on capital gains when they sell all or part of their business if more than the annual exempt amount of £11,700. From on or after April 6 2019, in order to qualify you must be a sole trader of business partner and have owned all or part of a business for at least 24 months before you sell.

 

About the Author: Glen Callow

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