The new Finance Act will ensure better conditions for succession
The Danish Government entered on the 19'th of November an agreement with the Danish People's Party, the Liberal Alliance and the Conservatives on the Finance Act for 2016. The parties agreed that the new Finance Act should improve the framework for the transfer of business to business funds, e.g in connection with succession.
More specifically, this means that there will be no capital gains tax, with the transfer of shares in a business to a foundation, but the new owner (the Fund) will take the fiscal position of the previous owner. There will be set aside 360 million DKK annually for the initiative. There will be allocated a total of 2.8 billion DKK in 2020 for the two initiatives. Additionally the Finance Act will ensure favorable conditions for transfer of ownership to the next generation.