Chand Chudasama, Partner in the Strategic Corporate Finance Team at Price Bailey said, "By encouraging a higher proportion of business sales to UK buyers, the Government could generate billions in additional tax without having to raise tax rates or freeze benefits." This highlights the potential for strategic policy shifts that benefit tax revenues while avoiding unpopular measures.
According to Price Bailey, there are 17,000 UK businesses that are potentially suitable for a management buyout (MBO). This indicates a significant opportunity to restructure ownership models, thereby fostering local investment and generating substantial tax revenues.
This £407bn tax opportunity for the UK Treasury is comprised of three parts: the capital gains tax paid by the original business owners on the sale, dividend taxes during the 16-year hold period, and capital gains tax on the future sale of the business.
Price Bailey estimates that incentivizing UK business owners to opt for staff management buyouts could potentially generate £25 billion annually, enough to address the £22 billion public finance shortfall.
Collection
[
|
...
]