Budgeting Time for the Budget
17 September 2020: Due to the unprecedented events of 2020 the Autumn budget may arrive later than usual, and according to some recent reports, may in fact become a Spring budget. However, as many of us follow the idiom ‘hope for the best prepare for the worst’ no doubt a great amount of planning is currently being undertaken in light of anticipated tax grabs in the budget.
Due to the sudden and unexpected expenditure of funds lavished on businesses and employees throughout the Covid-19 pandemic, it is now widely anticipated that measures will be taken in the next budget in order to recoup funds and swell the Government’s dwindling coffers. A notable potential area of tax review included in many reports is capital gains tax rates, with suggestion that changes are very much on the Chancellor’s radar.
Coupled with the recent amendments to entrepreneur’s relief, my apologies, business asset disposal relief, there is the potential for some business owners’ long term planning to be significantly impacted by recent tax changes.
In the last few weeks staff members of BRI have encountered a few occasions where a socially distanced lawyer has shared a tale of assisting a client with a business or asset sale that they have ensured will be completed as soon as possible in order to finalise matters prior to any potential budgetary tax amendments. However, on these occasions the lawyers in question had not yet considered the practicalities of the business owners also then extracting those funds from the business prior to the next budget.
Ensuring deals are done and sales are made is of course of great importance. But no doubt the client will also wish to then convert those funds into personal wealth in the most tax efficient manner, prior to any tax changes which may result in the Government taking a larger slice of someone else’s pie.
Here at BRI we deal with many solvent liquidations which enable the extraction of Company funds by the owner(s)/shareholder(s) in both a compliant and expedient manner. If you or your clients are currently seeking a sale of a business and wish to have all matters tied up as soon as possible please do get in touch and we will be happy to discuss if and how a solvent liquidation process may assist.
As ever, please be assured here at BRI we will always assist you by providing the right advice, first time every time, regardless of the fee outcome to us.