Entrepreneurs across the Midlands are being urged to carefully consider their personal and corporate tax situation ahead of this month's Emergency Budget, according to PricewaterhouseCoopers (PwC).

It is anticipated that the current capital gains tax rate of 18% will be moved closer to those applied to income tax, which could see it rise to as much as 40% or even 50%. Whilst generous exemptions have been promised for entrepreneurial business assets, it is not yet clear what form these exemptions will take.

Jasbir Khela, director at PricewaterhouseCoopers in the Midlands and Executive Committee member of the Institute of Asian Businesses, said:

"Any changes to the current flat rate of capital gains tax that applies when selling non-business assets could have a significant impact on entrepreneurs in the region but with a little foresight and planning it could still be possible to soften the impact."

Significant changes are expected to the so-called 'non dom' tax rules too, which apply to many entrepreneurs, including those in the region's Asian business community.

Jasbir Khela added: "The coalition Government has already announced its intention to review the taxation of non-UK domiciles and a number of changes are possible, including widening the scope of the current rules that apply to individuals to include income and capital gains tax.

"In recent weeks, we have seen an increase in the number of entrepreneurs and non-UK domiciles in the region seeking advice before 22 June 2010 and there is still time to act."

The Institute of Asian Businesses is advising all members to carefully review their tax positions ahead of the Emergency Budget, and seek professional advice where necessary. Any savings realised could then be used to fund further business and job opportunities in the West Midlands economy.