Could March Budget date signal an end of Entrepreneur’s Relief?

John Baddeley John Baddeley 07 January 2020

Business owners wanting to sell their business or shares in their company this financial year should bear in mind potential changes to Entrepreneurs’ Relief pencilled in by the Government.

The Conservative manifesto included a pledge to review and reform Entrepreneurs’ Relief and the announcement today of the next date for the Budget on March 11 will now focus potential sellers’ minds.

Possible changes could come in shortly after  the end of the first quarter of this year.

John Baddeley, chairman and corporate solicitor at Wake Smith Solicitors in Sheffield, said: “The Government signalled a review of Entrepreneurs’ Relief in their manifesto. It is currently seen as being too generous and they would like to either restrict it, or get rid of it.

“On that basis if business owners/shareholder directors want to take advantage of the current regime they need to address this in the first quarter of the year. Now we have the budget date we know that  it is unlikely that anything will change before then.

“Business owners could be looking at the potential impact of an increased Capital Gains Tax bill if they don’t sell their business pre 5 April 2020.

“Owners planning to exit their businesses should keep a close eye on this, as a successful exit from a business within the current rules might be a once in a lifetime opportunity.

“If the Government increased tax in this area it would be a great shame. We want to encourage entrepreneurs, not discourage them.”

Entrepreneurs’ Relief has played an important role in helping the UK establish its position as global hotspot for entrepreneurs to start and grow businesses in many sectors including in particular  fintech and e-commerce.

Entrepreneurs’ Relief reduces the amount of Capital Gains Tax payable when a business or shares are sold. It reduces the rate of tax payable on gains made on disposals to 10 per cent from 20 per cent, subject to strict criteria.

Some commentators have suggested that the new government could reduce the relief to generate more tax, or tighten the rules on qualification for the tax break, which could dis-incentivise bosses from investing in growing their businesses.

For advice on selling a business contact John Baddeley at [email protected]  or on 0114 224 2025.



May 20226April 20223March 20223February 20223January 20224December 20214November 20213October 20215September 20216August 20212July 202111June 20218May 20216April 20212March 20219February 20218January 20219December 20208November 202013October 20209September 20208August 20203July 20208June 202016May 202013April 20209March 202016February 20209January 202012December 20199November 20199October 201911September 20197August 20194July 20196May 20198April 20196March 20193February 20195January 20194December 20186November 20185October 20183September 20185August 20184July 20189June 20184May 201810April 20185March 20184February 20184January 20183December 20175November 20178October 20177September 20179August 20175July 20176June 201710May 20176April 20178March 201711February 20177January 201713December 20169November 20167October 201610September 201611August 20166July 20167June 20163May 20162April 20166March 20162February 20164January 20165December 20153November 20155October 20156September 20156August 20157July 20157June 20157May 20156April 201510March 20156February 201510January 20156December 20145November 20144October 20142September 20143May 20144March 20146February 20144January 20142December 20132November 20133September 20134July 20132June 20132May 20133April 20131March 20133February 20133January 20136December 20121November 20123October 20122August 20122July 20128June 20123April 20123March 20121January 20124December 20112November 20111October 20112September 20113August 20113July 20117June 20119May 20117April 20115March 20119February 20118January 20111December 20101October 20102September 20102August 20103July 20106June 20101May 20102April 20106March 20102February 20103January 20102December 20095November 20092October 20092September 20092August 20091July 20095June 20095May 20093April 20093March 20093February 20091January 20092November 20082October 20082September 20081August 20083July 20081January 20082

Featured Articles

Contact us