12 March 2020

Cuts to Entrepreneurs' Relief in 2020 Budget

Many business owners, who rely on the capital gains tax benefits of entrepreneurs' relief to give them financial security in the years after exiting their business, will be disappointed with Chancellor Rishi Sunak’s announcement yesterday that the relief will be reduced significantly from £10m down to £1m. The Chancellor did, however, resist calls to scrap the relief altogether; and the new limit of £1m sees a return to the original amount when the legislation was first introduced in 2008. It is also worth noting that the relief is £1m per person, not £1m per company, and so many family owned businesses may not be affected by it.

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