Gabelle, Abbey Tax and Accountax’s tax conference

OMB update

Paul Howard looked at recent changes affecting owner-managed businesses (OMBs) particularly companies. These affect venture capital schemes entrepreneurs’ relief in relation to dilution after a share issue substantial shareholding exemption corporate loss relief and the proposed changes to the intangible assets regime.

The common themes that emerge from these changes are focused on encouraging growing businesses enabling the raising of capital providing flexibility for corporate structures and removing some anomalies that can be seen to hamper corporate growth.

The changes to the enterprise investment scheme (EIS) and the seed enterprise investment scheme (SEIS) highlight the Treasury’s aim of focusing the reliefs on companies that are innovative and which aim to grow rather than on companies that are set up simply to obtain relief for investors. Finance Act 2018 introduced new s 157A...