News about family businesses

According to the Telegraph, Chancellor John Healey is considering taxing business owners' income when they pass companies to their children, a change that could nearly double their tax bill. Currently, some transfers are structured to attract capital gains tax at 24 per cent rather than income tax at 45 per cent, and the plan would close this route. Accountants warn it could push many family businesses toward 'extinction' and deter new firms. The move comes ahead of Healey's first Budget on 28 October, which faces a £35bn black hole flagged by the IFS, while headroom that stood at £23.6bn in March has shrunk. He is also reportedly targeting high-street banks and a new gambling machine tax expected to raise £500m, but has reportedly ruled out aligning CGT with income tax after investor concerns.