Our experts give their predictions for what the Chancellor might do and suggestions for what he should and shouldn’t do during the Budget announcement on 11 March.
For more information about our coverage on the day and the publications we produce, visit our Budget 2020 topic page.
More restrictive conditions
Robert Pullen, a partner at Blick Rothenberg said: “Entrepreneurs’ Relief is likely to be reviewed with more restrictive conditions or a longer qualifying period – the question is whether the chancellor will look to completely re-write the rules or to tinker with the qualification criteria.”
For more information, please contact Robert Pullen.
Entrepreneurs’ Relief vs Investors’ Relief
Nimesh Shah, partner at Blick Rothenberg said: “The first Budget in over 12 months and the first for the new Government takes place in one week. All the attention has been around Entrepreneurs’ Relief. A relief that was worth £80,000 when it was first introduced in 2008 and now provides a saving of up to £1m. At its highest, it was worth £1.8m because of the 28% Capital Gains Tax rate which applied. In the 2017/18 tax year, it was claimed by around 1,600 individuals according Government statistics.”
He added: “I remain amazed that the relief, claimed by so few, yet valued so highly by the UK’s entrepreneurial community has come under such attention and with the risk it could be abolished completely. What is more amazing is that Investors’ Relief, introduced in April 2016, and which provides the same £1m tax saving as Entrepreneurs’ Relief continues to go unnoticed. If the logic of the Government is to limit tax reliefs for the wealthy, it seems illogical that Investors’ Relief is not being targeted with the same vigour.”
Nimesh said: “It is hoped that this Government does not react hastily, and a review or consultation of both reliefs, alongside the UK’s wider entrepreneurial programme would appear the more sensible course.”
For more information, please contact Nimesh Shah.
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