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November 2019

Entrepreneurs in the cross hairs

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25 November 2019: "Entrepreneurs in the cross hairs" 2019 UK Election Manifesto Commitments from the main parties to the UK Entrepreneur “Cross Hairs” noun a pair of fine wires crossing at right angles at the focus of an optical instrument or gunsight, for use in positioning, aiming, or measuring. Example: "I raised my rifle and got the deer in the cross hairs" “Entrepreneurs” noun persons who sets up a business or businesses, taking on financial risks in the hope of profit. Example: "I raised my rifle and saw many entrepreneurs in the cross hairs" “Entrepreneurs Relief” definition is a tax relief that reduces the amount of Capital Gains Tax when you dispose of shares in your business. It results in a tax rate of 10% [instead of 28% on other capital gains] on the value of the disposal and you can claim as many times as you like up to £10 million of relief during your lifetime Example: “I am currently not in the Taxman’s cross hairs and I have liquidated my business via a Members’ Voluntary Liquidation which has resulted in me paying tax at 10p on each £1 of chargeable gain that I have realised as a result of luck, risk and hard work on my part”. It will come as no surprise to many that if you put the word Entrepreneur into the search section of the Labour Party’s 107 page Manifesto, nothing comes up. At least the party’s 44 page Costings Document entitled “Funding Real Change” does mention the E word and does not beat about the bush as far as Labour’s attitude to Entrepreneurs’ Relief is concerned “It is widely recognised that Entrepreneurs Relief in its current form cannot continue, so we will scrap it……………………..” In addition, Labour would align the rates of income tax and capital gains tax.  Accordingly, a business owner selling their business under this proposed regime could see a five-fold increase in their tax rate, meaning that potentially half of the proceeds of sale being taken away in tax. How I smiled when I read what the Business Editor at the...
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