New financial year 2011: Entrepreneurs’ Relief

The doubling of the lifetime limit for Entrepreneurs’ Relief from ?5m to ?10m is unexpected good news for owners of growing businesses and the maximum potential tax saving is now ?1.8m.?

Furthermore a couple who jointly own an eligible family business may both claim Entrepreneurs’ Relief.

But the news on Entrepreneurs’ Relief wasn’t all good:

• nothing has been done to address the five per cent shareholding requirement for Entrepreneurs’ Relief, which denies relief for many employee share and option holders; and
• the Entrepreneurs’ Relief rules remain inconsistent between different types of business and owner.

George Bull is head of tax at Baker Tilly.

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