Possible changes to Entrepreneurs’ Relief (ER)?
Officials at the Treasury are said to be reviewing plans to remove or alter the tax break for entrepreneurs following an outcry from business owners.
The £2.4bn a year tax break allows business owners to pay a reduced rate of capital gains tax (10%) when selling their businesses.
Tax experts think the tax break is unlikely to be eliminated, but there could be reforms such as reducing the lifetime allowance to £1m.
The Federation of Small Businesses said “making big changes to the relief at this juncture would hit many small business owners who have been planning for their retirement with the relief in mind”.
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