The Federation of Small Business are claiming a significant victory in the battle to have the government rethink their radical capital gains tax changes announced last year.
Originally the government wanted to increase capital gains tax on the sale of businesses to 18% – an effective 80% increase.
Over the past few months the FSB have been lobbying (with the help of everyone who filled in the petition I referred to here on my blog on the 22nd October 2007), negotiating and cajoling the government and finally achieved some significant changes to the proposals which will benefit the smaller business owners.
There is now to be a flat rate of tax of 10% on the sales of business up to £1,000,000 in value. I am still not clear what, if anything, will happen on sales over £1M but rest assured I will let you know via the blog as soon as I can.
In the meantime – power to the people!!!