TaxCorporate TaxShoe entrepreneur to sell to avoid CGT hike

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

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.

Further Reading:

Chancellor
set to soften CGT blow

Read
The Times’ story

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