2024 SME Growth: Normal service has resumed?
9th July 2024
What has the 2024 SME growth been like and has normal service resumed?
As we pass the end of Q2, many SME businesses will be assessing what sort of year they’re having. As can be seen from the chart below of actual client turnover figures, growth in 2024 year ends is averaging at 4.5%. This is above the long term trend of 2.1%, which is not surprising considering this period covers the peak phase of the recent global inflation cycle. This may be nothing to get excited about, but most business owners will prefer this to the topsy-turvy years immediately preceding it.
Such ‘normality’ will also be helpful to those thinking of selling up before a possible change in Capital Gains Tax (CGT) rules. The new Government has not officially signalled that this will happen, but the current 10% CGT rate applicable to the first £1m received from a business sale looks pretty generous, the payer of this tax will be a cash rich easy target and CGT ranks bottom of the number of ‘mentions’ in the Labour manifesto:
- Value Added Tax – x 3
- Corporation Tax – x 2
- Stamp Duty – x 2
- National Insurance – x 1
- Income Tax – x 1
- Inheritance Tax – x 1
- Capital Gains Tax – Nil
Perhaps something to dream about more seriously whilst away this Summer?
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Disclaimer - All information in this post was correct at time of writing.
