Entrepreneurs’ relief (ER) hanging in the balance?

“The Sunday Times” today appears to confirm that the ER concerns flagged in our blog on “…who pays the cheque?” post election (13 December) were close to the money, with Boris, going fairly typically down a populist anti-ER route, whilst the Treasury is apparently split as to whether to retain the relief, cut it from the current £10m to £1m or abolish it entirely.

Whether this is a leak designed to either test the mood or soften the impact of a more modest reduction in March…”thank goodness they’ve only lowered it to £5m”, rather than journalism with an inside track, we won’t have to wait too long to find out the impact.

For any of you concerned to mitigate some of the potential risks by locking into the benefit of current rates, we have current options to accelerate things.  These include both full and, where shareholders wish to retain an ongoing interest, partial exits.

As ever, we at Polestar are happy to chat and explore the options with you.

Sajid Javid is considering rowing back on plans to remove a tax break for entrepreneurs following an outcry from company founders who were relying on it for their retirement.

Entrepreneurs’ relief, which lets business owners and some directors pay only 10% capital gains tax (CGT) when they sell, is set to be scrapped or severely curtailed in next month’s budget. Boris Johnson claimed the £2.4bn-a-year relief served only to make the “staggeringly rich” even wealthier.

By Richard Hall on 02/02/2020