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Budget Countdown Prompts Business Owners To Act - Solicitors Journal

  Fearing potential tax hikes in the upcoming Budget, business owners rush to finalise asset sales Business owners, directors, and investors are rushing to complete sales and exit strategies ahead of the anticipated October 2024 Budget, according to a south coast top law firms . Ellis Jones Solicitors has reported a surge in capital gains tax (CGT)-related instructions from clients eager to avoid potential increases in tax rates or the reduction of available reliefs. CGT is a tax on profits made from the sale or transfer of chargeable assets, including company shares, second homes, and other significant possessions. For business owners, current rules provide some relief under Business Asset Disposal Relief (BADR), previously known as Entrepreneurs' Relief, which allows qualifying gains of up to £1 million to be taxed at a favorable 10% rate. Amounts exceeding this threshold are subject to CGT rates of 18% or 24%, depending on the seller's tax band. However, speculation is...
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Legal Services Board Confirms Rise To Compensation Fund Levy - Solicitors Journal

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The Legal Services Board has approved a significant increase in the Compensation Fund contributions solicitors must pay Today, the Legal Services Board (LSB) announced a rise in the contributions solicitors make to the Compensation Fund , driven by the need for financial stability following recent high-profile collapses, including Axiom Ince. The Solicitors Regulation Authority (SRA) initiated this increase to ensure the fund remains adequately managed. Ian Jeffery , the chief executive officer of the Law Society of England and Wales, expressed serious concerns regarding the SRA’s request for additional funds. He stated, “The SRA’s request for additional funds is largely the result of the collapse of Axiom Ince and the cost of compensating its victims.” Jeffery emphasized the importance of the independent review of the SRA’s performance, which the LSB commissioned, urging its publication to facilitate learning from the incident. The approved changes reflect a substantial increa...
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