This website uses cookies to ensure you get the best experience. Please read our policies for more information.

10 Chartered Accountants

News

Entrepreneurs’ Relief changes expected in March Budget
11 February 2020

Speculation is increasing that Chancellor, Sajid Javid, will announce significant curbs on Entrepreneurs’ Relief in the Budget, or could even scrap the valuable tax relief altogether.

According to the Financial Times, ministers are concerned that Entrepreneurs’ Relief is too generous to wealthy individuals.

Entrepreneurs’ Relief allows business owners to pay half the usual 20 per cent rate of Capital Gains Tax on gains of as much as £10 million when they dispose of all or part of a business.

Amongst the voices calling for Entrepreneurs’ Relief to be reformed has been the Federation of Small Businesses (FSB).

Speaking to the Financial Times, Craig Beaumont, the FSB’s Director of External Affairs, called for the relief to be refocused away from the wealthiest to more typical entrepreneurs.

He said: “Unlike employees, most don’t have a pension and have been planning to sell their business to fund their retirement.

“A reform to limit Entrepreneurs’ Relief to £1 million, for example, would align well with the pension pots limit.”

The speculation comes after the Conservatives committed to reforming Entrepreneurs’ Relief in their December 2019 General Election Manifesto.

Link: Entrepreneur tax relief to be scaled back in Budget

Link: Sajid Javid set to curb ‘entrepreneurs relief’ in Budget

Other recent news

Are tax rises on the horizon? What recent activity at The Treasury means for you and your business
09 July 2025

While the 2025 Spending Review focused on long-term investment rather…
Read more

Cash flow constraints – 57 per cent of businesses warn of rising costs
09 July 2025

57 per cent of small to medium-sized enterprises (SMEs) have…
Read more

Child Benefit repayments changing for thousands this summer
09 July 2025

The way families make Child Benefit repayments to HM Revenue…
Read more

Are your systems ready for MTD? Five things to check as the clock ticks down
09 July 2025

HM Revenue and Customs (HMRC) is working to enhance compliance…
Read more

Green levies on UK businesses to be cut
09 July 2025

The UK Government has confirmed that it will reduce green…
Read more

»

Case Studies