Following months of speculation, the chancellor has finally laid his cards on the table. Whilst this budget is only the beginning of the recovery, Sunak took the opportunity to paint a picture of what will come over the next few years.
At a time when millions of people are still using the furlough scheme and whilst billions of public funds are still being pumped into the economy, perhaps it is little surprise that the country isn’t being asked to bear the full weight of the national debt at this time. Allowance freezes and a phased increase to corporation tax will be breaking us gently in to an economic recovery that, for now, feels manageable. I wonder if we’ll be feeling the same in 2023?
A notable absence from the budget was an increase to CGT or a reduction in Business Asset Disposal Relief with the Chancellor stating that now is not the time for further fiscal reform. This is good news for those considering selling the shares of their business in 2021. The incentive still exists for owner managed businesses to sell and reap the rewards of running a successful entrepreneurial venture. Whilst there are more announcements to come on 23rd March, his cards are on the table it seems. Has the CGT can been kicked down the road or has the chancellor set us on an alternative path? The latter is looking possible, but time will tell.
If you’ve been considering an exit in 2021/2022 now is a very good time to start the process, not least because of the favourable tax position. The market is very buoyant, buyers are varied and numerous, and valuations remain strong. Get in touch and we’ll happily provide you with a market overview and insight into the sales process – book yours here.