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Smaller Firms 'likely To Rush To Exit'

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Once the PE boys get hold of these companies the downsizing/rightsizing/amalgamation of businesses will not long follow.

This CGT move is going to lead to a huge swathe of redundancies.

Good work Brown adn Darling!!!!!!!!

http://www.thebusiness.co.uk/news-and-********...h-to-exit.thtml

Smaller firms 'likely to rush to exit'

Wednesday, 10th October 2007

City bankers are predicting owners of small and medium-sized businesses will now rush to sell their companies ? following Alistair Darling's changes to taper relief on capital gains tax.

Under existing tax laws, many entrepreneurs who have built their companies from scratch are entitled to maximum taper relief after two years of ownership.

That means they only pay 10pc capital gains tax when they decide to sell their businesses.

However, from next April the amount they have to pay will almost double to 18pc.

Chris Sanger, head of tax policy at Ernst & Young, said "That creates a big incentive for every entrepreneur-owned private business to sell, creating an enormous buying opportunity for Britain's corporate raiders and private equity firms."

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Yes, the small business owner gets clobbered yet again.

And yet short-term BTLers and Flippers are being let off 50% of their capital gains tax. :angry:

Edited by Ethel

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Once the PE boys get hold of these companies the downsizing/rightsizing/amalgamation of businesses will not long follow.

Private Equity prefers larger firms as the returns for a given effort are much higher. They won't be interested in small businesses.

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http://www.thebusiness.co.uk/news-and-****...h-to-exit.thtml

Smaller firms 'likely to rush to exit'

Wednesday, 10th October 2007

City bankers are predicting owners of small and medium-sized businesses will now rush to sell their companies following Alistair Darling's changes to taper relief on capital gains tax.

... so on the way up the gov & media help boost your bonuses. They when the market is exhausted and your redundancy paycheck looms large, the gov sort you out with a nice little earner, by imposing taxes likely to produce a firesale amongst small, private companies. As if that wasn't enough, your old friends the media are on hand to help you spread your message of panic to the people you'll be looking to buy from.

Banking : it's not a bad life ...

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Private Equity prefers larger firms as the returns for a given effort are much higher. They won't be interested in small businesses.

Maybe...... But it may give some small business owners some oppertunies to buy other small businesss as they may be prepared to sell a bit cheaper to avoid the tax! So small business merger boom?!!?

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Yes, the small business owner gets clobbered yet again.

And yet short-term BTLers and Flippers are being let off 50% of their capital gains tax. :angry:

Remember that if properties are regularly flipped this is a trade taxable as income not capital gain.

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Remember that if properties are regularly flipped this is a trade taxable as income not capital gain.

Interesting point , so when does a Flip become a BTL and BTL become a Flip?

D

Edit for spelling

Edited by Dames

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