The changes to capital gains tax (CGT) announced in the 2007 Pre-Budget Report (PBR) have significant implications for individual shareholders. This may have an impact on the timing and structure of share sales by individuals.

This update looks at:

1. The tax issues for shareholders who may be considering disposing of their shares, including how any deferred consideration, in the form of loan notes or earn-outs, should be structured.

2. The impact of the changes on shareholders who have already exchanged shares for loan notes or earn-out rights.

3. What the proposals mean for investors in shares which are traded on AIM or which qualify for relief under the Enterprise Investment Scheme.