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UK founders rush to sell startups ahead of Autumn Budget

17 pointsby barron3510/01/20247 commentsview on HN

Comments

pfsalter10/01/2024

"actively exploring exits" is not the same as "rush to sell". Most startups are actively exploring exits as that's the whole damn point of a startup

jacobp10010/01/2024

I’m expecting changes to CGT, gambling winnings, pensions for higher (and up) tax rate payers, and IHT

I’d guess the pensions makes sense - you can take money out of an effective 62% tax rate, but you’ll never be paying that sort of tax rate when you withdraw from your pension, so that tax just wouldn’t get paid

IHT has so many exemptions too. The tories would have done better just having a simple system and increasing the threshold. Right now, you can pass a pension down and it’s exempt from IHT, and you already skipped a bunch of tax on it already

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yzydserd10/01/2024

Business Asset Disposal Relief (previously known as Entrepreneurs’ Relief) at 10% (20% if £1m+) may seem like a sweet deal, but if the worth of your business is its balance sheet, then you’ve already paid corporation tax at 25% so the effective rate is 32.5% (40% if over £1m). The gov has little to no wriggle room before it’s not worth taking the risk of incorporation.

bdjsiqoocwk10/02/2024

If a startup is making money, why sell?

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