Under the new rules, taper relief will be replaced by an 18 per cent rate of CGT for disposals where gains exceed £1m. For gains below £1m, business owners will pay 10 per cent tax.

But FDUK, a service that offers part-time finance director support, is advising entrepreneurs not to act rashly.

FDUK director Mike Pawley says: “In the current economic conditions it’s not a great market to be selling a business, so our advice to entrepreneurs is to hang on for a year or so.

"The increased net value of the business may then more than make up for the money lost through paying capital gains tax.

“For smaller businesses where the entrepreneur is making a gain of less than £1m the new regime will make little difference in any case”

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