Victoria Price, EY UK Entrepreneur Of The Year Leader, comments on CGT and Enterprise Management Incentives (EMI) announcement in the Chancellor’s Budget:
“Despite all the speculation, no news was good news as far as Capital Gains Tax (CGT) was concerned in today’s Budget. CGT is paid by entrepreneurs when they sell their business and any increases above the current rate of 20% could have been seen as a move that would dampen the scale-up ambition of UK entrepreneurs.
“In a further move that will be welcomed by entrepreneurs, a call for evidence was announced in relation to Enterprise Management Incentives (EMIs) which will look at whether more companies should be able to benefit from EMI. This, together with the proposal to ‘fast-track’ visa applications for those with a job offer from a recognised UK scale-up, should assist in attracting and retaining the most highly skilled, globally mobile talent whilst also scaling their business.
“However, the price to be paid came in the form of a hefty increase to Corporation Tax which will see the rate increased to 25% from April 2023 for companies with profits over £250k. Whilst still positioning the UK competitively in the G7, this will not be welcomed by those impacted.”