Incentivise those selling businesses to start new businesses quickly

Currently there are some fabulous tax incentives to invest in start-ups as an angel / minority investor such as SEIS & EIS. There is however no tax breaks to encourage you to start a new business quickly once you have exited.

If you could effectively reduce your tax bill on an exit - either at the Entrepreneurs Relief Rate of 10% or at 28% above the £10m lifetime allowance if you say started a new business in a certain timeframe. This could be set-up in a similar way to SEIS/EIS but with different parameters to encourage large investment from entrepreneurs with a successful track record.

Rules could be set around the timing (e.g. within 2 years of exit) or even based on the number of people the new entity employs.

Rob Hamilton, Instant | Tue 10th Dec 2013 at 18:58

One of our favourite ideas!

1 comment:

Would this not only allow people to buy and sell companies and avoid or have a huge saving on tax?
Terence Barnett, FestiveFridays | Wed 11th Dec 2013 at 13:38

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