Brokers warned over earn-out Capital Gains Tax trap

“This hike in the capital gains tax payable on disposal of business assets is triggering a mass exodus as brokers aim to sell up before the 5 April 2008 deadline to minimise their capital gains tax liabilities, but many will be caught out by the structure of the deal,” explains Chris Riley a tax manager with accountancy firm, CLB Littlejohn Frazer.

“Broking firms are typically sold using an earn-out agreement, and payments under such arrangements will probably be made past the new CGT rate

To continue reading...

You need to sign in to use this feature. If you don’t have an Insurance Age account, please register now.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: