Chancellor Rachel Reeves hit construction business owners in the pocket today with increases in dividend tax rates and a cut in tax benefits during Employee Ownership Trust (EOT) deals.
EOTs have become popular in construction with a string of contractors sold to their staff.
Currently business owners benefit from 100% Capital Gains Tax relief when they sell their firms via an EOT.
Reeves said that relief will now be reduced to 50% as part of a £26bn package of tax increases.
These also included a 2% hike in tax rates on dividend, property and savings income.
A new ‘mansion tax’ will also see an annual £2,500 charge for properties worth more than £2m and £7,500 for properties worth more than £5m .
Income tax thresholds will also be frozen until 2031.
from Construction Enquirer https://ift.tt/MqPNtiQ