Sajid Javid set to curb ‘entrepreneurs relief’ in Budget

[heyya99]

I guess the government know lots of contractors will be doing MVL right now so scrapping ER makes sense as it's a double windfall for the treasury. Government for business my hole.

[AtW]

Hard to be surprised about this to be honest - it’s such an easy target to get rid of and likely to be seen as positive by the majority if the public as it’s seen as a tax cut for the rich.

Whilst it doesn’t affect me right now as I have no plans of shutting down my business, in all honesty, the normal 20% CGT rate is still a very beneficial rate of tax if you have a decent 6 figure company reserve fund, when compared to the higher and additional dividend rates.

It won’t be 20% for long

[MrContractor85]

It won’t be 20% for long

Indeed. Tories only party for business they said and the kind of big bang drastic measures being touted by Sunak were only threatened by a socialist Corbyn-led gov't...

[AtW]

Indeed. Tories only party for business they said and the kind of big bang drastic measures being touted by Sunak were only threatened by a socialist Corbyn-led gov't...

To be fair Corbyn would have put CGT/div tax to 50% and corp tax to 26-28%, however Tory going half way making it easier for inevitable future Labour actually achieve that massive tax increase

[TestMangler]

To be fair Corbyn would have put CGT/div tax to 50% and corp tax to 26-28%, however Tory going half way making it easier for inevitable future Labour actually achieve that massive tax increase

This is the kind of dumb attitude that will get you exactly the government you deserve. The tories had already half way destroyed contracting before the last election and now they are finishing the job and your only crumb of comfort is to trot out made up stuff like 'Corbyn would have done xxx', when in reality, you actually have no idea what he'd have done. Seriously, could they have have done any more to contractors than the tories either have or are about to ?

[WordIsBond]

One thing the Tories have done a few times over the last decade or so is dribble a rumour about doing something a bit more severe than they actually do. This causes huge uproar, and then when the real change is announced (that's still bad, but not as bad), everyone breathes a sigh of relief. I wouldn't be surprised if this was the case here too.

I had the same thought. "Managing expectations."

[zerosum]

I had the same thought. "Managing expectations."

That was then, this is now. The lunatics have taken over the asylum.

[Untouchable1]

As you might have guessed, MVL Online is currently extremely busy, which is of course kind of good, but it's not "fun" busy. It's hundreds of people asking us to somehow know what the chancellor will announce, and when the impact will be from, and also do some clever wheeze to make their situation ok regardless of what's announced. Also expecting us to magically make third parties turn their things around really swiftly, despite it being entirely outside our control. Suffice to say it's all a bit stressful.

The uncertainty this government is causing, with entrepeneurs relief being a piddly matter relative to Brexit, is making life a nightmare for most business owners.

My own personal guess, and it's nothing more than that, is that anyone who had legally appointed a liquidator before 11 March 2020 would still benefit from the old/existing rules. Logic being liquidations aren't reversible, so would seem extremely harsh to change a tax law that impacts a situation where the individual had legally committed to it prior to the announcement of the change.

One thing the Tories have done a few times over the last decade or so is dribble a rumour about doing something a bit more severe than they actually do. This causes huge uproar, and then when the real change is announced (that's still bad, but not as bad), everyone breathes a sigh of relief. I wouldn't be surprised if this was the case here too.

At what point does it count as 'appointing a liquidator'?

The liquidation company I've spoken to has said I could stop the liquidation at any point up to the 'general members meeting' has taken place and put the company into dissolution.

Thanks,
Untoucable1

[Maslins]

At what point does it count as 'appointing a liquidator'?

The liquidation company I've spoken to has said I could stop the liquidation at any point up to the 'general members meeting' has taken place and put the company into dissolution.

Thanks,
Untoucable1

The liquidator should make it fairly clear at what stage they're legally appointed. Basically it will be a set of board minutes that the director/shareholder(s) sign, so yes, "general members meeting" sounds like the same thing. With our process it's on completion of step 4 here. Prior to that, yes, you can stop it, but only because in reality prior to that you haven't started it.

[heyya99]

My accountant says ER applicability isn't based on when you appoint a liquidator - it's based on when your money is extracted from the company. So appointing a liquidator before April 6th to avoid missing ER won't work.