Entrepreneurs’ Relief is always an important issue for entrepreneurs and SME owners. Here’s what Chancellor George Osborne had to say on entrepreneurs’ relief in his Budget speech.
From April 6, the current ten per cent capital gains tax rate for entrepreneurs will be doubled to cover the first £10m of lifetime gains, up from the £5m cap announced in the June Emergency Budget last year. After this, the CGT rate will again rise to 28 per cent.
From the horse’s mouth:
Chancellor George Osborne said: “From 6th April this year I am doubling the size of Entrepreneurs’ Relief to £10m. Let Britain be the home of enterprise in an age when people can invest all over the world.”
Great news for entrepreneurs – and possibly a bit of a surprise. Since George Osborne already increased Entrepreneurs’ Relief from £2m to £5m in his June Budget last year, this doubling of Entrepreneurs’ Relief was not expected.
This new, higher level of Entrepreneurs’ Relief will make entrepreneurship more attractive for many; and possibly encourage serial entrepreneurship. It rewards success.
Jamie Waller, founder of JBW Group: “Wow, what a Budget. Osborne did a fantastic job and has been very true to his word. He has put fuel back into Britain’s economy and was truly business- and family-focused. Entrepreneurs relief up to £10m will allow us hard-working enterprising Brits to focus on our success and not worry about being taxed on all of our efforts.”
Debbie Griffiths, entrepreneurial business partner at Deloitte: “It’s extremely encouraging to see that Entrepreneurs’ Relief has been increased to £10m. It will be interesting to see if anything comes through to change the five per cent ownership, and working requirements for Entrepreneurs’ Relief as to how much this will assist in encouraging business angels too.”
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