TaxAdministrationPrivate takeovers to top £5bn before CGT change

Private takeovers to top £5bn before CGT change

Private equity-backed takeovers of British businesses are set to top £5bn in the rush to sell ahead of the CGT change

Takeovers of private equity-backed British firms are forecast to exceed £5bn
in the first three months of this year, as company owners flock to offload their
businesses to avoid the new capital gains tax rules.

Despite the credit crunch making borrowing more expensive, the volume of
deals appears destined to almost double the volume of the last three months of
last year, when deals trickled to £2.9bn, according to figures compiled by the
Centre for
Management Buy-Out Research
at Nottingham University.

Tony Lamb, co-head of
Barclays
Private Equity
, which helped to put the research together, told The
Guardian
UK buyout activity so far in 2008 compared well with previous
years.

‘It remains to be seen whether this will continue into the rest of the year,
or whether this will prove to be a false dawn because the CGT changes have
pulled forward deal flow from later in the year.’

Further reading:

HMRC backlog holds up co sales pre-CGT change

Read
story in The Guardian

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