Entrepreneurs’ Relief curbed but not scrapped
In today’s Budget it was announced that the lifetime limit on gains eligible for Entrepreneurs’ Relief (which offers a reduced 10% rate of Capital Gains Tax on qualifying disposals) will be reduced from £10 million to £1 million.
Rumours that Entrepreneurs’ Relief would be scrapped or curtailed have been circulating for a while, with the relief believed to be unpopular with Boris Johnson. Earlier in the year, the Prime Minister described the relief as helping the “staggeringly rich” to become even richer.
The reduction in the lifetime limit to £1 million brings the limit back to where it was when Entrepreneurs’ Relief was first introduced in 2008.
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