If it did this, business relief would only be available if the individual holds more than 50 per cent of the company, and even then, relief would be at 50 per cent, rather than the current 100 per cent.
This change would most likely take most Aim-listed shares outside of the scope of business relief.
What might the impact be for investors an AIM?
There is a lot of speculation that the removal of business relief from Aim share would have a devastation impact on the market.
The LSE has been seeking to reassure the market and saying whilst it will be both “painful” and “unnecessary” it will not kill the market.
They have insisted that the Aim market would survive the abolition of the relief.
For investors in the Aim market, we would advise that following the Budget they get tax advice to consider the impact of any changes on their long-term tax position.
Stephen Kenny is head of private client at audit and accountancy firm PKF Littlejohn
