One of investors’ favourite ways to avoid inheritance tax could be scrapped – as a perverse side effect of the Chancellor’s about-turn on National Insurance.
Philip Hammond needs to raise taxes somehow to replace the abandoned increase in NI. He may decide that the self-employed should still be the victims and simply find a new way to tax them that does not break a Tory manifesto commitment.
One tax break that is currently enjoyed by many entrepreneurs is called business property relief. The perk is designed to prevent the founders of family businesses facing an inheritance tax bill when they die.
But it also can also be enjoyed by outside investors in start-up businesses, who include holders of Aim-listed shares. Investors who put money into many (not all) Aim companies will avoid inheritance tax on the shares if they own them for two years or more.
If Mr Hammond believes that the self-employed...
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