TaxAdministrationM&A activity in SME sector up 500%

M&A activity in SME sector up 500%

M&A activity in Scotland is up by about 500% on last year ahead of the 80% rise in CGT next month

Edinburgh law firm
Lindsays has
experienced a huge increase in the number of business owners seeking to offload
their companies to avoid an 80% hike in their
capital gains
tax
next month.

William McIntosh, Lindsays’ corporate partner, told The Scotsman
that merger and acquisition activity in the SME sector, in particular, was
running ‘massively ahead of the norm’.

‘Since the chancellor’s announcement, we have had many clients coming to us
looking to complete company or business sales and management buy-outs before the
new regime takes effect,’ he said.

’We are running something like 500% more than the same time last year. While
many may already have been considering a sale, the tax change seems to have
focused minds on an early exit.’

Further reading:

Private takeovers to top £5bn before CGT change

HMRC backlog holds up co sales pre-CGT change

Read
story in The Scotsman

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