Budget 2015 – Relief for entrepreneurs

There was some concern as the budget approached that the Chancellor might raise capital gains tax rates for individuals, or chip away at the Entrepreneur’s Relief (ER) which reduces chargeable Gains Tax on a disposal of business assets to 10% from the standard 18% or 28%. However, other than the closure of a couple of loopholes, the relief remains intact.

Following the Autumn statement when it was announced that ER would not be available for gains on goodwill when a business incorporated, there was concern that this would adversely affect individuals who were retiring at the time of incorporation. The rules have now been clarified to confirm that partners who do not acquire a stake in the successor company can still benefit from ER on the disposal of their share in the business.

If you would like more information on this topic, please contact a member of the tax team at your local office – we would be delighted to advise you.