SME's hit by tax reforms

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 Entrepreneurs hit by tax reforms

Small business owners face being denied tax relief on the sale of stakes held via joint ventures, following a government clampdown on tax avoidance. Rules on entrepreneurs’ relief were tightened in March, in an effort by the Treasury to restrict the tax break to those with shareholdings of 5% or more. The relief, which cost £2.9bn in 2013-14, allows those disposing of at least 5% of a business to pay CGT on their profits at a lower rate of 10% on lifetime gains up to £10m. Harris & Co accountants Northampton, the specialist small business accountants, have warned the government’s intervention is preventing business owners from claiming a tax break intended to encourage enterprise.

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