News

A spate of merger and acquisition (M&A) activity has hit the road haulage industry ahead of a change of the tax rules in April. In the last week, Volkswagen has acquired Scania, Wincanton has bought German logistics provider HeBo, Danish company DSV has purchased Roadferry and TDG has received a takeover offer from Laxey Partners.

Financial experts suggest that this will be the beginning of a flurry in M&A activity in the run up to 5 April. At present companies that sell a business or an asset are subject to capital gains tax.

This should be charged at 40% but as a long as a business has been owned for more than two years assets that have been reinvested in the business can be subject to 10% capital gains tax. However, because some people have abused this system the law is set to change on 5 April and the 10% rate will be increased to 18%. Only the  first £750,000 will come under the 10% rate and this is a life time allowance.