TaxCorporate TaxClearance stampede ahead of CGT change

Clearance stampede ahead of CGT change

Latest figures from HMRC show a rush to sell businesses before the 6 April deadline

HMRC

Extra resources: HMRC

It was no secret that business owners and entrepreneurs were busy
endeavouring to hit the 6 April deadline to sell their businesses.

New HM Revenue &
Customs
figures show how frenzied the rush was. The numbers show that in the
last quarter of the 2007/08 tax year applications for capital gains tax
clearances for complicated arrangements surged to 3,022, compared with 1,925 for
the same period in 2006/07 ­ a 57% increase.

Although private equity experts maintain the hike in CGT from 10% to 18% was
not affecting deal behaviour it’s clear the new rules focussed some minds.

Overall, there were 9,203 clearance applications for the tax year just
finished, compared with 7,793 in 2006/07 and 7,278 in 2005/06.

Businesses will not be able to use the spike in applications as an excuse for
not having schemes cleared, however, since the tax office turned round paperwork
in an average of eight days.

Extra resources were deployed to ensure that tax officials were well within
the 30 days allowed for processing applications, according to HMRC.

Clearances are used for complicated CGT plans which can involve tax of up to
£20m.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter