The government has finally signalled its intention to scrap Entrepreneurs’ Relief. So anyone thinking of selling their business should push forward with their plans NOW!
We have been warning for some time that the tax break for business owners and investors could come under threat.
But now Prime Minister Boris Johnson has given the strongest indication yet that the relief, introduced by Alistair Darling in 2008, will get the chop in this year’s budget.
He is quoted in The Times as believing that the relief, which in 2018 saved company owners £2.4bn, merely makes already “staggeringly rich” people even wealthier. This should be of no surprise, having been one of the very few commitments in the 2019 Conservative Party manifesto.
The relief allows business people to pay a lower 10 per cent rate of capital gains tax when they sell qualifying assets, compared with the normal 20 per cent.
For many business owners who rely on selling their biggest asset to fund their retirement, axing of the tax break will come as a huge blow. It will cost them tens of thousands of pounds.
You have been warned! Act now if you want to take advantage of Entrepreneurs’ Relief while it is still available.
Give us a call on 01273 945984 to discuss how we might be able to help you beat the budget tax axe.