PBR tax hike fear sparks advice stampede from entrepreneurs
Fears of a PBR increase in Capital Gains Tax sees entrepreneurs seeking advice on moving cash into dividends.
Entrepreneurs are making moves to avoid being caught by surprise changes in
the pre-Budget report set for 9 December.
Fears overan increase in Capital Gains Tax, currently standing at 18%, to
bring it closer in line with the 50% top tax rate levied on high earners next
April has seen advisers receive a deluge of calls for advice, according to the
Daily
Telegraph.
Businesses are considering pumping more cash into dividend payments with the
aim of buffering income against the higher tax rate for people earning more than
£150,000 a year.
Tony Burns, sole director of compensation claims company Claim Angel told the
Telegraph: “I’ve worked closely with my accountants to set up a system of
management accounts on a monthly basis to maximise the amount of dividends we
can take out of the company.
“I don’t see why we should hand it over to the taxman.”