Another tax relief that may be further restricted or even abolished is CGT entrepreneurs relief. This relief allows business owners to pay just 10% CGT on the first £10 million of capital gains when they dispose of their business and was tightened up in the Autumn 2018 Budget.
When first introduced, the relief only applied to the first £2 million of gains but the limit has been increased twice since 2008 to the current lifetime limit so the relief may be limited again in the March Budget.
The Conservatives’ general election manifesto signalled the government would curb or scrap the relief, but it is popular with many Tory MPs and party members.
Rishi Sunak is expected to target entrepreneurs’ relief, a tax break which halves the capital gains tax paid when people sell their businesses.
The move was attacked by some business leaders who claimed it would hurt entrepreneurship, as well as Conservatives MPs concerned about a backlash against Mr Sunak’s first Budget.
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Our team of chartered accountants have a wealth of experience in a broad range of sectors and work with many entrepreneurs.
If you need further guidance on the entrepreneurs relief please do not hesitate to contact the team.
Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
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