Tax Articles

Equity release through value freeze

Shareholders looking to extract cash from their business (either now or later) can do so in a tax
efficient manner at between 0% and 18%. This also provides opportunities to incentivise and retain
employees with share ownership at little or no cost to the company or themselves and without the
employees suffering the significant tax costs usually associated with direct acquisitions of shares.

Protecting against CGT increases

With the differential between CGT and Income Tax rates at a high point (10% or 18% vs. 50+%) and
the need to maximise tax revenues, if CGT rates are to be increased, there is a finite window during
which locking into the current 18% rate is possible. This planning is also effective at securing the £1m
entrepreneurs relief band at 10%.

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