Shoe entrepreneur to sell to avoid CGT hike

Linda Bennett of LK Bennett fame to sell by March to avoid big increase in tax on sale

Written by Alex Hawkes

Accountancy Age, 12 Dec 2007

Linda Bennett, the entrepreneur behind LK Bennett, the shoe-maker, is to sell up at once in order to avoid a big CGT bill after April of this year.

The entrepreneur is the most high-profile figure to make plain that sale plans have been influenced by the tax changes that will see the effective rate of tax hiked by 80%.

Bennett told The Times that the tax was an 'obvious' factor but that the main reason for selling was to attract a buyer who could accelerate the chain's growth.

Sir Ken Morrison is also said to be thinking of selling his family's stake in the Morrison's supermarket chain before stepping down in three months' time, in a bid to avoid the tax hike.

The 'simplification' of CGT has aroused the ire of entrepreneurs, with chancellor Alistair Darling thought to be on the point of announcing measures to soften the blow this week.