Changes to entrepreneurs’ relief edge closer
4th June 2020
Plans to change entrepreneurs' relief have reached the committee stage of Finance Bill 2019-21 in Parliament.
The lifetime limit for gains qualifying for entrepreneurs' relief reduced from £10 million to £1m for disposals made on or after 11 March 2020.
In Spring Budget 2020, Chancellor Rishi Sunak said the capital gains tax break only benefitted a small number of the wealthiest taxpayers.
Sunak also claimed the relief had done little to generate additional entrepreneurial activity in the UK.
Entrepreneurs' relief has been rebranded as business asset disposal relief ahead of the committee stage on Thursday 5 June 2020.
The Chartered Institute of Taxation (CIOT) would like to see a broader public consultation about the objectives and efficacy of entrepreneurs' relief.
John Cullinane, tax policy director at the CIOT, said:
"It is disappointing that such a significant change to an established relief risks going through the policy process with little examination and debate.
"A transparent process of evaluation would have allowed taxpayers greater indication of the Government's direction of travel."
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