Those of you timing your exit ,selling your consulting business, and aiming to make your equity realisation as tax efficient as possible, will be keeping a keen eye on what the new Conservative/Lib Dem coalition government is aiming to do to reduce the deficit through increased taxation and in particular how CGT will be targeted in that mix of measures.

CGT currently stands at 10% for the first £2m, then 18% above that, however prior to the Coalition agreement the Liberal Democrats wanted the 18% rate of CGT brought closer to the 50% top rate of income tax.

The expectation now is that CGT will be increased for non-business assets up towards income tax rates, but there should be large exemptions for profits from the sale of businesses in order to not excessively tax entrepreneurs.  Confirmation of the tax on owners of consulting businesses realising equity will have to wait for 50 days or so for the expected emergency Budget.