Where are we now?

Government policy is to limit entrepreneurs' relief to genuine business and share disposals. Trustees do not have a separate entitlement to entrepreneurs' relief, but rules for qualifying beneficiaries are relaxed a little. Rules for associated disposals are amended by Finance Bill 2016 an...

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Bibliographic Details
Published in:Taxation 2016-06, Vol.177 (4553), p.14
Main Author: Simpson, Craig
Format: Magazinearticle
Language:English
Subjects:
Capital gains
Corporate tax planning
Joint ventures
Tax legislation
Online Access:Get full text
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Summary:Government policy is to limit entrepreneurs' relief to genuine business and share disposals. Trustees do not have a separate entitlement to entrepreneurs' relief, but rules for qualifying beneficiaries are relaxed a little. Rules for associated disposals are amended by Finance Bill 2016 and backdated. It has been recognised that changes made on joint ventures in 2015 went too far. Legislative changes relating to transactions with connected parties. Over the past 18 months we have seen a number of changes to the rules on entrepreneurs' relief, with a clear policy intention to limit it to genuine business and share disposals. It was pleasing to see some of the relaxations in the Finance Bill 2016 which, if enacted in its current form, will provide relief against some heavy-handed changes in FA 2015. It is encouraging to see the government listening to legitimate concern from the profession. So where are we now? Finance Bill 2016 makes changes in four areas: 1. Incorporations. 2. Joint venture companies. 3. Corporate partners. 4. A new investors' relief.
ISSN:0040-0149