CGT receipts hit £194m as Budget uncertainty weighs on SMEs
Alex Ogden, director at Executive Life, comments: “The government says it wants Britain to be pro-business, but many entrepreneurs are hearing a very different message. Further increases to Capital Gains Tax hitting £194m last month, on top of higher National Insurance costs and mounting tax pressures, risk making the UK a less attractive place to build, invest in and ultimately sell a business.
“CGT is often presented as a tax on wealthy investors and landlords. But behind those gains are also entrepreneurs selling companies they may have spent decades building. Tax them too aggressively and the risk is simple: capital, investment and entrepreneurs can go elsewhere.
“Just as damaging is the uncertainty. Every rumour of a CGT rise ahead of a Budget forces business owners to ask whether they should sell, restructure or bring forward plans. The reverse also happens: people thinking of selling don’t, as they don’t want to pay the potential higher tax. Even if the change never happens, the speculation itself can distort decisions.
“Being pro-business isn’t just about the headline tax rate. It’s about giving entrepreneurs the confidence to plan for the long term. With another Budget approaching, SMEs should be reviewing their position now, looking at business protection, legitimate tax efficiencies and where they can strengthen their finances, rather than waiting for the next tax surprise.”