Changes to Entrepreneurs' Relief in the March 2020 budget
13 March 2020
After lots of speculation, and much lobbying to have it abolished Entrepreneurs' Relief has been spared in the last budget. But with a reduction from relief from £10M of lifetime gains down to just £1M it's a mere shadow of what it was. This means that someone who was planning to sell for £10M will now take an additional £900k tax hit. The argument is that it wasn't the tax relief that was motivating them. And that's perhaps true - but it will have an impact on timing. A business owner who was planning to sell based on a given level of net after tax proceeds will now need to sell for a higher price, and so probably delay the transaction.
Here's a short video I've just done on the changes, their impact, and how business owners might address the problem. There's more on our website or YouTube channel
You can also watch PEM's budget webinar for an update on all the other changes in the budget.