The relief is intended to replace Business Asset Taper relief for disposals by smaller business owners. It produces a net tax rate of 10% on the disposal, although for those making modest gains there is a slight increase in the actual tax burden compared to that payable under business asset taper relief because the CGT annual exemption saves less tax under this relief (at 18%) than it did under taper relief (at 40%).
In all successful businesses the issue of succession from the current owner to the next generation comes up, and one question that often arises is: when is the most appropriate time to begin planning for succession?
The riddle of the Sphinx asks, 'What has four legs in the morning, two in the afternoon, and three in the evening?' The answer, of course, is humankind - on all fours in infancy, on two feet through middle age, and supported by a stick in old age.
As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future.
Clients often ask us to help them value their business, and are surprised when we ask them for what purpose they require the valuation. The way we value a business depends upon the use to which the valuation will be put: