News from Cryer Sandham Limited
Business and financial news
A) Employment issues
For those clients with employees please be advised that as from 1 October 2007 the national minimum wage rate was increased as follows:-
Employee age Rate per hour
22 years and over £5.52
18 to 21 years inclusive £4.60
16 to 17 years £3.40
Furthermore there has also been a change to statutory holiday entitlement. From 1 October 2007 the holiday entitlement has risen to 4.8 weeks (i.e. 24 days for an employee working a five day week), this is inclusive of bank holidays. The entitlement is applied pro-rata for part time workers.
The entitlement will be raised again (as from 1 April 2009) to 5.6 weeks.
B) Capital Gains Tax
In his pre budget speech the Chancellor of the Exchequer, Mr Alistair Darling, announced a dramatic change to the Capital Gains tax provisions commencing on 5 April 2008. In summary he has abolished both taper relief and indexation; however he has amended the rate of tax payable to 18% for all disposals assessable to CGT.
Generally any individual currently looking to dispose of a personal asset (such as a second or let property or stocks and shares quoted on a recognised stock exchange) may well be better off, from a tax perspective, if they delayed the sale until after 5 April 2008. Conversely anyone seeking to sell their business, a business asset or simply wind up their own trading limited company are more likely to pay less tax if they undertake this before 5 April 2008.
Please also note that since the announcement there has been significant criticism of what would appear to be a more penal tax regime for business owners and as such there is always the possibility that the Chancellor might amend this new tax regime before its implementation.